European shares traded higher Thursday, having touched a four-year high early in the session after China said the world’s two largest economies had agreed to cancel additional tariffs imposed in their months-long trade war.
The pan-European Stoxx 600 closed up 0.37% to 406.56, slightly paring earlier gains which saw the European blue-chip index hit its highest point since July 2015. Auto stocks jumped 1.7% to lead gains while utilities slid 1.9%.
China’s Commerce Ministry said Thursday that Washington and Beijing had over the past two weeks agreed to a phased removal of duties on billions of dollars’ worth of each other’s goods.
Commerce ministry spokesman Gao Feng said that the cancellation would be important for the two sides to reach a “phase one” trade deal, Reuters reported.