European Equities Rally as Puma Soars on Chinese Stake Sale

European equities gained momentum, driven by corporate factors like Puma's ascent post-stake sale to China's Anta Sports. The STOXX 600 rose 0.2%, with banks reaching a high since May 2008. Anticipation surrounds LVMH's results, while Roche gains on positive drug trial news, amid global trade tension concerns.

European equities saw an uptick on Tuesday, boosted by several positive corporate developments that alleviated some investor concerns over recent trade tensions. Puma's shares notably surged after the sportswear giant sold a significant stake to China's Anta Sports.

The pan-European STOXX 600 benchmark index rose by 0.2% by 0940 GMT. Banks in particular leaped 1.2%, marking their highest point since May 2008. This uptrend is partly due to improved fundamentals with expectations for accelerated loan growth and further positive earnings surprises within the sector, according to Ciaran Callaghan, head of European equity research at Amundi.

Puma's shares jumped 8%, reaching their highest level since last March following the 1.5 billion euro stake acquisition by Anta Sports Products. This move is projected to bolster Puma's sales in China. Meanwhile, anticipation builds around LVMH's annual results, as the luxury sector watches for recovery cues post-price hikes. Additionally, India's finalized trade deal with the EU and U.S. tariff threats add layers of complexity to the global trade landscape.

(With inputs from agencies.)