BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - German stocks rebounded on Tuesday, with sentiment underpinned by a slew of positive earnings updates as well as U.S. President Donald Trump's comments that a breakthrough with China, if it happens, will be announced in three to four weeks.
A China diplomat also sounded confident about a possible deal, saying the two countries have the 'ability and wisdom' to reach a trade deal that is good for both.
On the data front, Germany's consumer price inflation accelerated as initially estimated to its highest level in five months in April, final data from Destatis showed.
Consumer price inflation rose to 2 percent in April from 1.3 percent in March. The rate came in line with the flash estimate published on April 30. This was the highest rate since November, when prices were up 2.1 percent.
The benchmark DAX was up 32 points or 0.27 percent at 11,908 in opening deals after declining 1.5 percent the previous day.
Banks rose, with Commerzbank rising 1.3 percent and Deutsche Bank adding half a percent.
Bayer tumbled 2.5 percent after a California court ordered the company to pay more than $2bn in damages over allegations its Roundup weed killer causes cancer.
Volkswagen gained 1 percent on news it would simplify the group through full or partial sale of its unit MAN Energy Solutions and RENK.
Allianz rose half a percent after reporting a rise in Q1 profit and backing its FY19 operating profit view.
Evotec jumped as much as 5.5 percent and Lanxess climbed 1.1 percent on the back of positive earnings updates.
ThyssenKrupp fell 1.3 percent after it swung to a loss in its second quarter.
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