Aug 27 (Reuters) - London stocks lowered European stocks in early trading hours on Tuesday ,But signs of diminishing trade tensions between the US and China have limited market losses.
London's FTSE100 index fell 0.4% as investors returned from a weekend bank holiday, and the pan-European STOXX 600 index was down 0.22%.
British stocks - HSBC Holdings Plc, British American Tobacco and AstraZeneca - fell between 0.3% and 1.3%, and were the biggest drags on the STOXX 600.
An outlier was Milan’s FTSE MIB, which rose 0.04%, as the ruling 5-Star Movement and the opposition Democratic Party appeared on the verge of a deal to form a new Italian government on Monday.
The two parties will meet on Tuesday at 0900 GMT to continue negotiations. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Bernard Orr)