UPDATE 2-European stocks end brutal August on a positive note

* Real estate firms rise on watered down Berlin rent cap
* Tariff reprieve lifts markets for second day
* STOXX 600 posts best week since June

(Recasts with new comment, updates to close)
By Medha Singh and Agamoni Ghosh
Aug 30 (Reuters) - European stocks scaled fresh one-month
highs on Friday, wrapping up a brutal month on a positive note
as investors took comfort from Chinese and U.S. willingness to
return to trade talks.
The pan-European STOXX 600 index .STOXX rose 0.7% to hit
its highest level since Aug. 2, building on the previous day's
rally after both China and the United States indicated they were
discussing the next round of negotiations in September.
Tariff-sensitive commodity-linked stocks .SXPP rose 2.5%,
automakers .SXAP 1% and technology stocks .SX8P gained 0.9%.
"The trade situation is still tense but in the meantime
traders are happy to buy back into the stock markets," said
David Madden, analyst at CMC Markets in London,
"Although things can change very quickly, so far it looks
like we are heading into September on a somewhat optimistic note
in relation to U.S.-China trade talks."
The real estate sector .SX86P jumped 2% and was set to
post its best day since Oct 2018, as German real estate
companies gained after a report said a rent freeze in Berlin
could be watered down. German real-estate firms Deutsche Wohnen DWNG.DE , Vonovia
SE VNAn.DE and LEG Immobilien AG LEGn.DE rose between 4% and
9%.
Britain's FTSE 100 .FTSE ended the day 0.3% higher but
just shy of having its worst month in four years as sterling's
recovery, the U.S.-China trade spat and a sharp drop in mining
stocks took its toll on the export-heavy index. .L
Most European indices have racked up losses this month
barring Denmark .OMXC20 , Romania .BETI and Switzerland
.SSMI , as an inversion in the U.S. Treasury yield curve
exacerbated concerns about economic growth in the face of the
U.S.-China trade war.
Italy's FTMIB .FTMIB , the best performing eurozone stock
index in August, fell short of recording a monthly gain after
the 5-Star movement unsettled its potential coalition partner
Democratic Party (PD) with tough terms. Milan shares had rallied this week on growing optimism about
a new coalition government at the centre, weeks after League
leader Matteo Salvini pulled support from a coalition
arrangement that formed Rome's central government. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
stocks in Aug https://tmsnrt.rs/2ztDVlL
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>