European shares tick up as Middle East tensions wane

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Jan 7 (Reuters) - European shares rebounded on Tuesday, snapping a two-day losing streak, as concerns over a U.S.-Iran standoff eased, while automobile stocks rose after Rolls-Royce reported record annual sales.

A global selloff in stocks following the killing of a top Iranian general by the United States eased on Monday in the absence of any fresh developments in the standoff between the two countries.

The pan European STOXX 600 Index rose about 0.5% by 0805 GMT, with German stocks outperforming most peers.

The automobile subindex rose 0.6% after British carmaker Rolls-Royce marked a 25% jump in 2019 sales, giving some comfort to the sector that has been plagued by slowing global demand.

Shares of Rolls-Royce owner BMW rose about 0.8%. (Reporting by Ambar Warrick in Bengaluru; Editing by Rashmi Aich)