Europe open: Shares make tentative gains after US-China 'deal'

(Sharecast News) - European shares opened cautiously higher on Wednesday after the US and China reached an agreement on trade, after a second day of high-level talks in London. The pan-regional Stoxx 600 index was up 0.08% in early deals, with major bourses higher.

China pledged to ease curbs on exports of rare earth minerals to the US, while Washington agreed to lift some export controls on semiconductor exports. The agreement still needs to be signed off by Presidents Trump and Xi and do not address the broader trade war between the two countries.

Traders will also be watching for US inflation numbers and a spending review from the UK government, widely expected to see sharp cuts in some public spending amid claims of a return to austerity.

In equity news Zara owner Inditex slumped after posting weaker-than-expected quarterly sales and signalling a slower start to the summer season than last year. Peers H&M and Zalando were lower on the news.

Reporting by Frank Prenesti for Sharecast.com