September 2, 2019 / 7:38 AM / 17 days ago

European shares rise in cautious trade, FTSE shines

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 30, 2019. REUTERS/Staff

(Reuters) - European shares opened higher on Monday, driven by a rally in miners, while sentiment remained fragile as the United States and China kicked off the latest round of tit-for-tat tariffs on each other’s goods.

Britain's FTSE 100's .FTSE 0.4% jump led gains, with mining majors such as BHP (BHPB.L) and Rio Tinto (RIO.L) rising on a surge in iron ore prices overnight in top consumer China.

Iron ore prices were supported by a pledge on Saturday from Beijing to beef up investment in infrastructure projects and regional development to support a slowing economy.

Meanwhile, Washington’s 15% tariffs on a variety of Chinese goods came into effect on Sunday, while China began to implement new duties on a $75 billion target list.

However, both sides will still meet for talks later this month, U.S. President Donald Trump said.

Trade-sensitive German shares .GDAXI was up 0.1% and the pan-European stocks benchmark index STOXX 600 rose 0.3% by 0714 GMT, beginning September higher after a 1.6% drop in August as the trade war, which has roiled financial markets and raised global recession fears, rages on for more than a year.

With U.S. markets shut for a local holiday, volumes are expected to thin.

A slew of official and private manufacturing numbers from the euro zone expected during morning trade may also sway markets. These will come after data from China painted a bleak outlook for its factories.

(This story has been refiled to correct typo in first paragraph)

Reporting by Susan Mathew in Bengaluru; Editing by Sriraj Kalluvila

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