European stocks rally after China announces US tariffs cut

European stocks rose on Thursday, to continue their rally for the fourth straight day, as market sentiment improved in Europe as the Chinese stock market continued to recover, after China decided to cut tariffs on US imports.

The Stoxx Europe 600 index was higher by 0.4% at 11:50 GMT, after it closed higher by 1.2% yesterday, on several companies earnings results and after news emerged for a treatment of the coronavirus.

The pan index opened today's session higher, to continue rallying for the third fourth day, with most of the major European exchanges and sectors rising today.

The banking sector saw the largest gains in Europe today, rising more than 1.5%, after better than expected Q4 earnings results by major European banks.

The Chinese stock market closed higher today, after the CSI 300 index added 1.9%, posting its third straight daily gain.

China unveiled a tariffs cut by half on US imports worth $70 billion starting from Feb. 14, which raised hopes for improving the phase-two trade deal talks for a comprehensive trade agreement between China and the US.

S&P 500 futures jumped 0.6% today, after the index closed higher by 1.1% yesterday at Wall Street, on strong US data and fears over the coronavirus impact easing.

Back to Europe, the Euro Stoxx 50 index gained 0.4%, the German DAX rose by 0.7%, France's CAC 40 added 0.6%, and the UK's FTSE 100 rose by 0.4%.