BP falls after warning on Q4 profit
JD Sports Fashion drops on lowering profit forecast
French PM to speak later in the day
STOXX up 0.5

Jan 14 Reuters European shares recouped some losses on Tuesday after falling for two straight sessions following a report that U.S. Presidentelect Donald Trump might opt to impose gradual tariff hikes, with sectors such as automobiles advancing.

The panEuropean STOXX 600 was up 0.5 by 1018 GMT after falling about 1.4 in the last two sessions.

Analysts attributed Tuesday39;s advance to a Bloomberg report that members of Trump39;s incoming economic team are discussing slowly ramping up tariffs month by month.

We39;ve seen a slight easing of those fears, but I wouldn39;t go as far as saying that the mood has changed completely, said Fiona Cincotta, senior market analyst at City Index.

It is still very much in its early stages and there is still very much a sense of uncertainty about how aggressively Trump will be applying tariffs when he does take the office.

Automobiles and parts, a sector that has been under pressure lately due to the tariff threats, jumped 1.5.

Additionally, the technology index also advanced 1.2, while euro zone lenders were up 1.7.

Also aiding equities, euro zone bond yields edged down slightly from their multimonth highs on the day, with the yield on the 10year bund last at 2.6.

Global markets have been on edge lately about the chances of fewer interest rate cuts by the Federal Reserve this year…