European shares track Asian peers higher on China tariff relief hopes

European stocks rose on Tuesday as positive economic data from Asia and signs of an easing in U.S.-Sino tensions overshadowed global slowdown worries, while shares of Scandinavian airline SAS slid after it applied for bankruptcy in the United States.

The continent-wide STOXX 600 index was up 0.4% at 0708 GMT, tracking gains in Asian markets after data showed China's June services activity growth beat expectations, while those in Japan expanded at the fastest rate in over eight years.

Offering a brief respite to nervous markets was a report that U.S. President Joe Biden was contemplating rolling back some tariffs on Chinese imports, as well as news that Chinese Vice Premier Liu He had a "constructive" virtual dialogue with U.S. Treasury Secretary Janet Yellen.


All eyes are now on a slew of business activity data for France, Germany, and eurozone countries due later in the day.

SAS fell 6.7% after it filed for bankruptcy and warned that a strike action by pilots had impacted its financial position and liquidity.

Remy Cointreau rose 4.6% after Jefferies upgraded the French spirits group's stock to "buy" from "hold", citing its positioning to navigate inflationary pressures facing staples. (Reporting by Devik Jain in Bengaluru; editing by Uttaresh.V)