European shares ride on U.S.-China talks, earnings optimism

(Reuters) – European shares rose on Friday as signs of improving U.S.-China relations gave a fresh dose of optimism for investors counting on the easing of lockdowns to spark a recovery in global growth.

The pan-European STOXX 600 <.stoxx> rose 0.7% by 0712 GMT. London markets were closed for a public holiday.

Top U.S. and Chinese trade officials discussed Phase 1 trade deal on Friday, and China said it agreed to improve the atmosphere for its implementation.

That offered some relief to investors worried about rising tensions between the two countries after U.S. criticized China’s handling of the novel coronavirus outbreak.

German industrial company Siemens jumped 5.2% after it announced cost-cut plans to deal with the impact of the pandemic following an 18% drop in industrial profit during its second quarter.

Shares in the largest Dutch bank, ING Groep NV , gained 5.9% as it posted first-quarter pretax earnings that beat market expectations.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Anil D’Silva)