(Bloomberg) -- European shares opened higher, extending Monday’s gains, as U.K. traders returned from a public holiday, with basic resources stocks leading the gains.

The Stoxx 600 Index rose 0.3 percent, led by miners, while the auto sector strongly rallied for a second day. Shares in U.K.’s insurance comparison company GoCompare.com jumped 5 percent after reports it has attracted takeover interest from potential acquirers.

President Donald Trump said late Monday it’s not the right time for trade negotiations with China, just after the U.S. and Mexico agreed on a deal that Trump said will replace Nafta, lifting U.S. equities to all–time highs.

“The overall situation is positive for taking on more risk so any good news on the trade war is being welcomed by the market as there is still margin for more upside," said Diego Fernandez, chief investment officer at A&G Banca Privada in Madrid. “We need to see the details on the Mexican deal but it shows Trump is moving forward with his plans to negotiate trade agreements.”

To contact the reporter on this story: Macarena Munoz in Madrid at mmunoz39@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Blaise Robinson

©2018 Bloomberg L.P.

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