European stocks traded higher Tuesday after U.S. President Donald Trump told CNBC that immediate tariffs would be imposed on a further $300 billion of Chinese goods if President Xi does not attend this month's G-20 meeting.
The pan-European Stoxx 600 closed provisionally up 0.72% during the session, basic resources jumping 2.8% while autos also climbed 1.7%, with most sectors trading in positive territory.
Trump is set to meet with Xi at the G-20 summit, which is scheduled for June 28-29 in Osaka, Japan. The leaders of 19 nations and the European Union are expected to attend, as trade tensions approach boiling point worldwide.
Asian stocks rose Tuesday afternoon as markets shrugged off the threat, the Shenzhen component leading gains with a 2.91% jump.
Markets had rallied worldwide Monday after the U.S. suspended its proposed tariffs on Mexican imports. German auto shares, including BMW, Daimler and Volkswagen, rose Tuesday as investors continued to digest the news.
Back in Europe, the race to replace U.K. Prime Minister Theresa May has begun, with ten candidates in the running for the vacated Conservative Party leadership position. The candidates are separated primarily by their positions on Brexit negotiations, and whether they consider leaving the European Union without a deal an option for the country.
Data out of the U.K. Tuesday showed wages in the three months to April beating forecasts while employment growth slowed, though the jobless rate held at its lowest rate since 1975.
In corporate news, Swiss drugmaker Roche's $4.3 billion takeover of U.S. gene therapy specialist Spark Therapeutics has been postponed again due to regulatory scrutiny, while Reuters reported Monday that the Italian government is set to again extend the deadline to rescue loss-making airline Alitalia after failing to secure investors' backing.
In terms of individual stock moves, British luxury fashion brand Ted Baker tumbled after the company warned on its 2019 profit following an "extremely difficult" start to the year.
Danish hospital equipment company Ambu climbed to top the Stoxx 600, rising 7.8%. French video game producer Ubisoft's stock hit the bottom at one point but recovered slightly to close 2.5% lower.