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European Shares Rebound From Two-month Lows

European stocks rebounded from two-month lows on Tuesday, as U.S. President Donald Trump's more conciliatory tone on trade talks with China helped spur optimism the two sides will eventually reach a deal.

Trump said that a breakthrough with China, if it happens, would be announced in three to four weeks.

The Chinese government's top diplomat, State Councillor Wang Yi, also struck a more upbeat tone, noting there was still hope to resolve the issue in a friendly way.

The pan European Stoxx 600 was up 0.6 percent at 374.82 after losing 1.2 percent in the previous session.

The German DAX was rising half a percent, France's CAC 40 index was climbing 1 percent and the U.K.'s FTSE 100 was up 0.8 percent.

Bayer tumbled 2.3 percent after a California court ordered the company to pay more than $2bn in damages over allegations its Roundup weed killer causes cancer.

Volkswagen gained 1.3 percent on news it would simplify the group through full or partial sale of its unit MAN Energy Solutions and RENK.

Evotec jumped as much as 5 percent and Lanxess climbed 1.3 percent on the back of positive earnings updates.

French automaker Renault lost 2.6 percent on reports that a French probe into alleged emissions cheating by the automaker is a step closer to possible court action.

Electric utility company Engie advanced 1.5 percent after backing its 2019 view.

British bakery chain Greggs jumped as much as 12.6 percent after raising its profit forecast for a third time this year.

Miners Anglo American, Glencore and Antofagasta were up more than 2 percent while oil giant BP Plc rose 1.4 percent.

BHP advanced 1.7 percent after saying it would retain its Australian nickel assets.

ITE Group rallied 2.3 percent on reporting a rise in first-half profit.

In economic releases, Germany's economic sentiment weakened unexpectedly in May, survey data from the ZEW-Leibniz Centre for European Economic Research showed.

The economic sentiment index fell to -2.1 in May from +3.1 in April. The reading was expected to rise to 5.0.

Euro zone industrial production fell in March for a second straight month, in line with market expectations.

The U.K. jobless rate declined in the first quarter to the lowest since 1974, signaling continuing firming of the labor market.

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