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Aug 25 (Reuters) - Renewed optimism over a U.S.-China trade
deal and a smaller-than-expected decline in German economic
output fuelled a rally in European stocks on Tuesday, with
Frankfurt shares hitting a 1-month high.
The pan-European STOXX 600 index .STOXX rose 0.8% by 0711
GMT, extending this week's gains on the back of positive updates
on COVID-19 treatment efforts.
Lifting sentiment, top U.S. and Chinese trade officials
reaffirmed their commitment to the Phase 1 trade deal despite
diplomatic rifts between the two countries. The trade-sensitive German DAX .GDAXI rose 1%, helped by
data showing Europe's largest economy contracted by a record
9.7% in the second quarter, but marked a minor upward revision
from an earlier estimate of -10.1%. All eyes will be on the Ifo institute's business climate
index for August, due to be released at 0800 GMT.
Among individual stocks, technology company Aveva Group
AVV.L rose 3.2% after announcing a deal to buy OSIsoft, a
privately held maker of industrial software, for an enterprise
value of $5 billion. LVMH LVMH.PA gained 1.1% after a source told Reuters the
French luxury goods giant and U.S. jewellery chain Tiffany
TIF.N will give themselves another three months to complete
their $16.2 billion tie-up.