* STOXX up 1 pct, off highs; DAX up 1.9 pct
* China-U.S. trade war truce boosts miners, oil, tech
* Car makers Volkswagen, Daimler, BMW rally
* Trump says China to cut tariffs on U.S.-made cars
* Glaxo suffers worst day in a decade after $5.1 blnacquisition (Adds details, closing prices)By Helen Reid and Danilo MasoniLONDON, Dec 3 (Reuters) - Miners, autos, tech, and oilstocks surged on Monday, driving Europe's main benchmarks upstrongly after U.S. and Chinese leaders agreed a temporary trucein a trade war.
U.S. President Donald Trump and Chinese President Xi Jinpingreached a truce at the G20 meeting on Saturday, haltingadditional tariffs and agreeing to fresh talks aimed at reachingan agreement within 90 days. Although markets reacted positively, some investors andanalysts said the outcome had already been partly anticipatedand there remained much for the two to agree upon.
The pan-European STOXX 600 index ended off highs,up 1 percent, having climbed as much as 2.1 percent earlier inthe day and having been set at one point for its best day ineight months.
Germany's DAX - the most sensitive to China andtrade war fears - led the way with a 1.9 percent rise to itshighest level since Nov 15.
Both the STOXX 600 and the DAX remain sharply lower so farthis year, down around 7 and 11 percent respectively."While President Trump described the bilateral meeting withChina as "amazing and productive", we believe the rivalrybetween the U.S. and China will not be easily overcome,especially over the issue of intellectual property and marketaccess," said UBS Wealth Management CIO Mark Haefele in a note.Goldman Sachs analysts said the announcement strengthenedtheir view that "Trump is likely to want to conclude anagreement - even if it does not include a full rollback oftariffs - well ahead of the 2020 presidential election".Financials were the biggest driver of European shares asChina-exposed bank HSBC rose 2.4 percent and investorscheered the prospect of an end to a trade war which has dentedgrowth.Mining stocks led the gains and were up 4.3 percenton the news which gives China, the world's biggest metalsconsumer, more wiggle room in the next few months.Antofagasta , Anglo American , and Glencore were up between 3.7 and 7.8 percent.
Car stocks , which have been battered by fears ofrising tariffs, jumped 3.1 percent after Trump said China hadagreed to cut import tariffs on U.S.-made cars. German carmakers Daimler , BMW , andVolkswagen climbed 2.9 to 4.8 percent, while tyremaker Continental gained 3.3 percent and Faurecia rose 5.6 percent.Tech stocks jumped 2.6 percent with chipmakers thebest-performing. Infineon , STMicroelectronics , and AMS gained 3.8 to 6 percent.
Overall, analysts have cut their 2019 earnings growthexpectations for world stocks over the past month as concerngrew that a trade war would compound the impact of a slowingglobal economy.
The oil sector also jumped 2.1 percent as crudesoared ahead of this week's OPEC meeting, expected to result ina supply cut. Luxury stocks highly sensitive to China were also among topgainers, with heavyweight conglomerate LVMH up 5percent and Gucci owner Kering rising 7.7 percent.Away from the trade war relief, shares in Frenchsupermarkets Carrefour and Casino , fell 5.8and 3.7 percent respectively after riots in Paris on Saturday. Argenx topped the STOXX with an 12.7 percent gainafter the Netherlands-based biopharma company said it had signeda deal worth potentially up to $1.6 billion with Johnson &Johnson affiliate Cilag to develop its Cusatuxumab drug incertain types of cancer. GlaxoSmithKline suffered their biggest one-day dropin more than a decade, down 7.6 percent, after it agreed to buyU.S. cancer specialist Tesaro for $5.1 billion, acostly investment to rebuild the pharmaceuticals business by newCEO Emma Walmsle. "There is no doubt that GSK needs to bolster its pipelinebut given the competition Tesaro faces... and the relative lackof synergies with GSK's existing oncology pipeline, we are notconvinced that this is the best way to do so," said Liberumanlyst Graham Doyle.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^global earnings growth expectations dec 3 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Josephine Mason and Gareth Jones)
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