Europe Markets: European stocks trade near four-year highs

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Primark store on London’s Oxford Street.

European stocks traded near four-year highs on Tuesday, with market attention still focused on the prospect of a U.S.-China trade deal.

After closing Monday at the highest level since Aug. 5, 2015, the Stoxx Europe 600 SXXP, +0.10%  increased 0.02% to 403.50.

The German DAX DAX, +0.14%  rose 0.14% to 13154.21, the French CAC 40 PX1, +0.22%  added 0.05% to 5827.39 and the U.K. FTSE 100 UKX, +0.35%  rose 0.41% to 7399.87.

The S&P 500 SPX, +0.37%  on Monday finished at a record high on hopes for a trade deal. U.S. officials are considering removing tariffs on $112 billion-worth of Chinese goods as a concession to seal a “phase one” trade deal, the Financial Times reported late on Monday. The 15% tariffs on items such as clothing, appliances and flat-screen monitors were put into effect on Sept. 1. U.S. stock futures ES00, +0.28%  edged higher on Tuesday.

Meanwhile European earnings season continues, with results through Monday on track for a 4.6% year-on-year decline in the third quarter, according to Morgan Stanley.

Associated British Foods ABF, +4.98%  rose 5% as the company reported a 2% rise in adjusted pretax profit for the year and said operating margins at its fast fashion retailer Primark will have a small drop. The U.S. expansion of Primark will continue as the company has signed a lease in Philadelphia.

Siemens Gamesa Renewable Energy SGRE, -9.07%  plunged 9% as the turbine maker guided for lower-than-forecast revenue and margins in what the company called a “transitional” year. The company also said it would cut 600 white-collar jobs.

Jewelry retailer Pandora PNDORA, -13.48%  shares stumbled 11% after reporting worse operating profit and revenue than forecast. Same-store sales excluding Hong Kong fell 10% in the third quarter.