LONDON, Nov 7 — European shares hit a more than four-year high today after China said Beijing and Washington have agreed to cancel existing tariffs in different phases, adding fuel to a rally that is now spanning to its fifth straight day.

China and the United States must simultaneously cancel some existing tariffs on each other’s goods for both sides to reach a "phase one” trade deal, the Chinese commerce ministry said.

The pan-European STOXX 600 index rose 0.4 per cent by 0813 GMT, with export-heavy Germany outperforming with a 0.7 per cent rise.

Among the top gainers across European sub-sectors were automakers and miners, while defensive plays such as telecoms and utilities fell, suggesting higher risk appetite.

Siemens gained 3.4 per cent, and was the biggest boost to the STOXX 600, after the German industrial company’s fourth-quarter results beat estimates. —Reuters