INSUBCONTINENT EXCLUSIVE:
LONDON: European shares touched their highest level since the start of February on Tuesday as autos and bank stocks climbed, and Italian
shares recovered from Monday's dip on investors' worries over a new government's spending plans.
The pan-European STOXX 600 inched up 0.1
percent, extending Monday's gains, with auto stocks and financials making gains while mining stocks fell.
Asian stocks had wilted overnight
as surging oil prices reignited investors' fears of inflationary pressures.
Carmakers Volkswagen, BMW, Daimler were among the biggest boosts
to the STOXX, up 1 to 1.6 percent, after a Bloomberg report that China would cut import duty on cars to 15 per centfrom 25 percent.
Italy's
Fiat Chrysler also rose 1.2 percent, helping the Italian index gain 0.6 percent
Investors were still awaiting the final details of 5Star and League's government after the anti-establishment parties proposed a political
novice as prime minister.
Inmarsat shares sank 12.6 per centto the bottom of the STOXX after the International Maritime Organisation
authorised competitor Iridium to provide maritime safety systems, threatening Inmarsat's monopoly in maritime distress
communications.
Fischer jumped 8.8 per centafter UBS raised the stock to a "buy".
Among smaller companies, bicycles to car parts retailer
Halfords became the latest in a string of British consumer-facing companies to warn on profits
Its shares fell 13.7 per centto the bottom of the FTSE 250 after warning profits would be flat
(Reporting by Helen Reid, Editing by Kit Rees)
