European shares edge up; Puma leaps on Anta stake purchase

European equities climbed on Tuesday, supported by a raft of positive corporate catalysts that eased investor concerns over recent trade tensions, while shares of Puma PUMG.DE jumped after the sportswear maker sold a stake to China's Anta Sports.

The gains underscore how investors are leaning on company-specific factors to guide market sentiment amid an increasingly uncertain macroeconomic environment.

The pan-European STOXX 600 benchmark .STOXX was up 0.2% by 0940 GMT. Banks .SX7P jumped 1.2%, hitting their highest since May 2008.

"The fundamentals for banks have really improved. We expect loan growth to pick up and we could see further positive earnings surprises from the sector this year," said Ciaran Callaghan, head of European equity research at Amundi.

PUMA CLIMBS, LVMH RESULTS AWAITED

Puma's shares rose 8% and hit their highest level since last March, following a deal by Anta Sports Products 2020.HK to buy a 29.06% stake in the German company for 1.5 billion euros ($1.8 billion). The deal is expected to help Puma increase its sales in the lucrative Chinese market.

"At this point in the cycle, we can expect dealmaking to pick up. Balance sheets are strong and management teams are looking to see where incremental growth can come from," Callaghan added.

Among other market movers, Swiss pharmaceutical firm Roche's ROG.S shares rose 0.5% after it said a phase II clinical trial of its experimental obesity drug CT-388, a once-weekly injection, had delivered positive results.

Meanwhile, shares of LVMH LVMH.PA were flat ahead of annual results. Investors are hopeful of further signs that the luxury giant is recovering after a lengthy slowdown, but also want more action from CEO Bernard Arnault to win back shoppers alienated by hefty price hikes.

Separately, Indian Prime Minister Narendra Modi said that India and the European Union have finalised a long-pending landmark trade deal.

"The deal is going to be helpful (for the European economy), but only marginally so," said Jeremy Batstone-Carr, European strategist at Raymond James.

Investors are also concerned about the long-term implications of U.S. tariff threats for the global trade order, after U.S. President Donald Trump said he would hike duties on South Korean autos and other imports, citing delays in implementing the pact signed last year.

-Niket Nishant and Avinash P/Reuters