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European shares rebound from 2-month lows after trade sell-off

Credit: Reuters - Business (Amazon FireT
Published on May 14, 2019 - Duration: 01:41s

European shares rebound from 2-month lows after trade sell-off

European shares bounced in early trading on Tuesday after hitting two-month lows a day earlier as comments overnight from Washington and Beijing helped soothe investor worries about a deepening trade row and defy a heavy sell-off on Wall Street.

David Pollard reports.

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European shares rebound from 2-month lows after trade sell-off

Europe's share markets went into recovery mode on Tuesday, attempting to rebound from Monday's two-month lows and, for a while at least, push aside worries over China/U.S. trade.

The STOXX 600 and Germany's export-sensitive Dax were both up around half a per cent early on.

Europe's car makers - some of the hardest hit a day earlier - led the sector gainers.

Comments from Beijing helped soothe investor worries.

Both sides have ramped up tariffs on each other's goods in recent days but officials say China has agreed to keep vital trade talks going.

And in Washington, Donald Trump appeared confident his U.S. Treasury Secretary's visit to China would eventually yield a breakthrough.

(SOUNDBITE) (English) U.S. PRESIDENT DONALD TRUMP, SAYING: "I also want to thank Secretary Steven Mnuchin, Steve.

Steve just got back from China.

We'll let you know in about three or four weeks whether or not it was successful.

You never really know, right?

But I have a feeling it is going to be very successful." But after most Asian markets deepened their losses on Tuesday there was a feeling in Europe that the rebound could be purely technical.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING (about TRADE DISPUTE): "The trade dispute is still the dominant topic.

It's only over once it's over.

And it's not over yet." With a near six per cent loss, Bayer was among the biggest fallers of the day after a jury awarded $2 billion to a California couple over allegations its Roundup weed killer causes cancer.

Overall, STOXX 600 shares are down more than four per cent so far this month.

And look set for their biggest one-month decline since December's sell-off.

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