European Shares Stage Tentative Rebound As Yuan Stabilizes

European stocks opened on a positive note Tuesday after China fixed the currency stronger than expected onshore.

The yuan stabilized to hold above 7 per dollar, suggesting the People's Bank of China is not ready to let the currency slip further just yet.

There was also some cheer on the data front. Germany's factory orders rebounded at a faster than expected pace in June, data from Destatis showed.

Factory orders grew 2.5 percent month-on-month in June, reversing a revised 2 percent drop in May. The pace of growth also exceeded the expected rate of 0.5 percent.

The pan European Stoxx 600 index was up 0.4 percent at 370.86 after giving up
2.3 percent the previous day.

The German DAX was rising half a percent and France's CAC 40 index was gaining 0.7 percent while the U.K.'s FTSE 100 was little changed with a positive bias.

Sports Direct International rallied 2.1 percent. The British retailing group said that it had acquired the business and assets of the clothing retailer Jack Wills from Jack Wills Limited.

Industrial group Rotork jumped more than 8 percent despite the company cutting its 2019 sales forecast.

Metro AG shares slumped 6.6 percent after Czech billionaire Daniel Kretinsky's investment vehicle denied media reports it was exploring raising its takeover offer for the German retailer and wholesaler.

Postal giant Deutsche Post climbed 4.6 percent after raising its 2019 forecast.

Content, media and communications group Vivendi SA advanced almost 7 percent on saying it has entered into preliminary negotiations with Tencent Holdings Limited regarding a stake in Universal Music Group.

Rolls Royce Holdings dropped 1.5 percent as it posted a pretax loss of 791 million pounds for the half-year ended 30 June 2019.