UPDATE 2-European shares rally to near 2-mth highs on U.S-China trade reprieve

* All major sectors in the black, tech leads gains
* Trump says China trade talks 'back on track'
* Atlantia down, accuses Rome of leaks in concession row

(Updates to close)
By Susan Mathew and Amy Caren Daniel
July 1 (Reuters) - European shares surged on Monday to their
highest in nearly two months, led by trade-sensitive technology
stocks after the United States and China agreed to restart trade
negotiations.
The pan-European STOXX 600 index .STOXX rose 0.8% on
broad-based gains, with the STOXX 50 index .STOXX50 of
Europe's biggest stocks rising 1.3% to its highest level since
February 2018 before closing 0.7% higher.
At a meeting on the sidelines of the G20 summit, President
Donald Trump offered concessions to his Chinese counterpart Xi
Jinping including no new tariffs and reducing restrictions on
tech company Huawei.
From its side, China agreed to make unspecified new
purchases of U.S. farm products and restart negotiations after
the last round collapsed in May. Stocks across the globe rose on the news, with the S&P 500
.SPX hitting record highs. .N MKTS/GLOB
In Europe, Frankfurt's trade-sensitive DAX .GDAXI rallied
1%, the most among the major European indexes, while the tech
index .SX8P rose 1.9% as chipmakers were boosted by the Huawei
relief.
Infineon IFXGn.DE , Siltronic WAFGn.DE , ams AG AMS.S ,
STMicroelectronics STM.MI and ASM International ASMI.AS rose
between 3.7% and 5.6%. The blue-chip Swiss index .SSMI gained 0.7% despite stocks
being blocked from trading on EU exchanges after talks to
resolve a dispute between Brussels and Switzerland collapsed.
RELIEF RALLY"
The breakthrough in trade talks helped the STOXX 600 index
start the second half of the year on a strong note, after
posting its biggest first half yearly gains since 1998 on
Friday.
After a sell-off in May that marked its weakest monthly
performance in over two years, the main index climbed 4.2% in
June on hopes that major central banks would be more
accommodating to counter the negative effects of a trade war
that has lasted for months.
But analysts warned against excessive optimism given no
deadline was set for progress on a deal, and both parties remain
at odds over significant parts of an agreement.
"Markets are seeing a temporary relief rally (from the trade
truce). But, it needs to be more than that to sustain it, I
think," said Edmund Shing, global head of equity derivatives
strategy, BNP Paribas
"Even if you don't get a deal, you need to see some
progress."
Atlantia ATL.MI fell 3.2% and was among the few decliners
on the STOXX 600 as it battled with the ruling 5-Star party over
selectively leaking a government report to revoke the group's
national toll-road concession that accounts for a third of its
core profits.