* Plus500 sinks after profit warning
* Michelin shares register best day in nearly a decade
* Gucci owner Kering falls
* Credit Suisse takes profits on global equities (Adds closing prices)By Josephine MasonLONDON, Feb 12 (Reuters) - European shares closed higher onTuesday as investors cheered positivity around U.S.-China tradetalks and signs of a compromise to avoid another U.S. governmentshutdown, while Michelin's results pumped up automotive stocks.The pan-European STOXX 600 was up 0.5 percent, withGermany's trade-sensitive DAX advancing 1 percent andParis' CAC 40 up 0.8 percent.Automakers and their suppliers were the biggestgainers, up 2.9 percent after Michelin deliveredbetter than expected results and pledged further gains inoperating profit this year despite challenging conditions.The French tyre maker's shares rallied 13 percent for theirbest day in nearly a decade.
Italy's Pirelli and Germany's Continental were among the biggest gainers in their domesticmarkets and on the STOXX 600.London indicesunderperformed their euro zonepeers as the pound rose slightly after a parliamentary addressby British Prime Minister Theresa May, in which she asked formore time to secure a Brexit deal.
Gucci owner Kering was another winner, with itsshares turning positive in mid-morning trade as investors tookcomfort from upbeat comments on the first-quarter outlook. Its shares had fallen as much as 3.3 percent in early tradeas better than expected sales initially failed to impressinvestors in a sign of the demanding expectations for luxurybrands after solid numbers from the sector, including LVMH last week. The shares closed with a 3.3 percent gain.Thyssenkrupp fell 2 percent after a mixed earningsreport. The German steel-to-elevator company stood by its2018/19 targets but reported a big drop in first-quarter resultsand warned that the global economic environment is darkening.Investors continued to punish TUI as the touroperator reported a widening loss in the three months to Dec.31. Shares fell another 5.4 percent after its profit warninglast week.
Online trading platform Plus500 lost about 30percent of its value after the company issued a profit andrevenue warning, blaming tightening EU regulation on its retailbusiness. The news dragged peer IG with it. Credit Suisse said it was shifting to a "neutral" stance onglobal equities, taking profit on its "overweight" view."While we continue to expect overall attractive totalreturns from global equities this year, we recognise certainmounting short-term risks," it said."In particular, we note that investors remain thin-skinnedafter last December's correction."Furthermore, the U.S.-China trade conflict could lead torenewed volatility while growing political tensions in Italy,France and Germany and the still uncertain Brexit outcome couldweigh further on European stocks, the bank said. (Reporting by Josephine Mason and Julien PonthusEditing by Keith Weir and David Goodman)
Reuters Messaging:rm://josephine.mason.reuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.