US President Trump's decision to delay an increase in tariffs on Chinese goods drove European shares up to their highest level since early October as car-makers and miners rallied, while Bank of Ireland slumped after results.

The pan-European STOXX 600 was up 0.2 per cent by 0825 GMT, in line with Germany's trade-sensitive DAX. The STOXX hit a high of 373.18 points in early deals, its highest since October 10.

Autos and basic resources stocks jumped 1.1 per cent as the tariff reprieve triggered relief in the sectors considered most at risk from slower, more expensive global trade.

Car parts makers Valeo and Faurecia were among the top performers, up 2.6 per cent, while steel firms ArcelorMittal and Norsk Hydro also gained 2.4 per cent and commodity trader Glencore rose 2.2 per cent.

Disappointing results drove some significant falls.

Shares in Bank of Ireland tumbled 7.5 per cent after the lender cut its outlook for 2019 and reported a weaker fourth-quarter net interest margin.

Covestro shares fell 3.7 per cent after the German chemicals group said its 2019 core earnings could fall to as little as half of last year's level.

But the market was supported by a rally in Italian shares.

Italy's FTSE MIB outperformed the market, climbing 0.8 per cent as government bonds also jumped after Fitch affirmed its BBB credit rating on the country.

Shares in banks, which have significant government bond holdings, jumped 1.7 per cent.

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