UPDATE 2-China tariff delays pull European shares out of doldrums


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    * Washington delays 10% tariffs beyond September
    * Italian shares rebound as banks rise
    * Henkel cuts outlook, shares slump

 (Recasts throughout, updates to close)
    By Susan Mathew and Shreyashi   Sanyal
    Aug 13 (Reuters) - European shares staged a comeback from
early losses on Tuesday as growth sectors led the charge, after
Washington's move to delay tariffs on some Chinese goods
provided a lift to battered global sentiment.
    The U.S. administration will delay imposing a 10% tariff on
certain Chinese products, including laptops and cell phones,
beyond September, the Office of the U.S. Trade Representative
said on Tuesday. A separate list also included some imports that
would be exempted altogether from tariffs.  urn:newsml:reuters.com:*:nL2N2590HM
    That supported a move back to riskier assets after a
cocktail of negative drivers had pressured markets for the past
few sessions.
    Commodity stocks  .SXPP , automakers  .SXAP  and tech
sectors  .SX8P  were among the biggest gainers in Europe, and
helped the pan-European STOXX 600 index close up 0.5%, erasing
session losses of up to about 0.8%.
    "What we are seeing now with this announcement is a clear
positive development," said Ken Odeluga, market analyst at City
Index. "This definitely counts as a relief to markets because...
this announcement shows the willingness to compromise from both
    But Odeluga doubts the longevity of Tuesday's rally given
recent volatility in markets spurred by recession fears,
worsening Hong Kong tensions and a crash in Argentine markets.  
    Export-reliant Germany's DAX  .GDAXI  rose 0.6% on the U.S.
news, recovering after data showed plunging economic sentiment
among German investors. Investors will be closely watching
Wednesday's second-quarter economic growth data to see if
Europe's biggest economy is headed for recession.  urn:newsml:reuters.com:*:nL8N2592DP
    The easing in trade tensions also lifted oil prices which
saw energy stocks being among the top gainers on STOXX 600.
    Italian shares  .FTMIB , troubled by political turmoil, rose
more than 1% as banks  .FTIT8300  rose with Monte Dei Paschi
 BMPS.MI  up 7.2%. 
    Right-wing League leader Matteo Salvini's drive for early
elections in Italy hit a road bump on Monday with parliamentary
party leaders failing to decide when the Senate should debate
his no-confidence motion in the government.  urn:newsml:reuters.com:*:nL8N2584CL
    "I think we're going towards a technical government... that
brings Italy to elections in an orderly fashion, securing public
finances, which can help reduce the damage," said Carlo
Franchini, head of institutional clients at Banca Ifigest.
    In corporate news Henkel  HNKG_p.DE  shares slid to the
bottom of the pan-region index after the German consumer goods
company lowered its full-year outlook for sales and earnings.

 (Reporting by Agamoni Ghosh, Shreayshi Sanyal, Susan Mathew in
Bengaluru and Danilo Masoni in Milan; Editing by Bernard Orr)
 ((Agamoni.Ghosh@thomsonreuters.com; +918067491130; Reuters
Messaging: Agamoni.Ghosh.thomsonreuters.com@reuters.net))

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