European shares at record high on China plan to cut tariffs on some U.S. imports

European shares rose to a record high on Thursday, helped by China's plan to cut tariffs on some U.S. goods and a swathe of strong earnings.

The pan-European STOXX 600 index rose as much as 0.7% to a record high of 426.700. China said on Thursday it plans to halve tariffs on some U.S. goods, which could help improve negotiating conditions for the second phase of a trade deal after the signing of a Phase 1 agreement between the two countries earlier this year.

The initial agreement had signaled no further escalation in a prolonged trade war which had severely hampered global economic growth. In Europe, China-sensitive basic resources and automobile subindexes rose 1.8% and 1%, respectively.

France's third-biggest bank Societe Generale SA rose 0.5% after reporting a stronger capital position in its fourth-quarter results.