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Kering up as Q4 revenue beat expectations

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SGS up after posting better-than-expected profit

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EssilorLuxottica rises as Jefferies upgrades to 'buy'

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TUI shares drop after weak bookings growth

(Updates to market close)

By Nikhil Sharma and Johann M Cherian

Feb 11 (Reuters) - European shares closed a choppy

Tuesday session at a record high, as investors weighed the

European Union's response to U.S. President Donald Trump's

tariff hike on all steel and aluminium imports that sparked a

decline in basic resources stocks.

The pan-European STOXX 600 index rose 0.2%, with

banking stocks leading sectoral gains with a 1.4%

rise.

Basic resources fell 1.9%, tracking a drop in base

metal prices after Trump imposed tariffs on all steel and

aluminium imports that will take effect from next month and is

also expected to announce reciprocal tariffs on all countries

that impose duties on U.S. goods this week.

Shares in European steelmakers, which account for about 15%

of U.S. imports, fell. ArcelorMittal and Voestalpine

stocks dropped 1.9% and 0.9%, respectively, while

Thyssenkrupp fell 3.9%.

European Commission President Ursula von der Leyen condemned

the Trump administration's move and said that the 27-nation bloc

would take "firm and proportionate countermeasures".

"Markets are just waiting to see exactly how the European

Union will respond and we've seen in the past with, of course,

Canada and Mexico - the fact that tariffs are announced doesn't

necessarily mean they're gonna be implemented in full or

implemented when he says they will be," said Daniela Hathorn,

senior market analyst at Capital.com.

Meanwhile, travel and leisure was the top sectoral

laggard, down 2.3%, dragged by an 11% drop in Entain ( GMVHF )

after the British bookmaker said CEO Gavin Isaacs would step

down immediately.

TUI fell 10.8% after Europe's largest travel

operator said its bookings growth weakened, sending shares of

rival airlines such as Lufthansa, easyJet and

Wizz Air down between 1.2% and 3.9%.

The STOXX luxury index rose 1.1%, with Kering

up 1.3% after the French luxury group reported

fourth-quarter revenue above expectations.

Despite an uncertain global trade backdrop, the benchmark

STOXX index has logged gains of about 7.8% so far this year as

analysts expect Trump's moves to be negotiating tactics and as

investors focus on corporate earnings.

Among others, Vaar Energi shares rose 6% after the

oil and gas exploration and production company raised its

dividend and posted fourth-quarter operating profit in line with

expectations.

Swiss testing and certification company SGS jumped

6.7% after it reported slightly better-than-expected profit.

EssilorLuxottica rose 1.7% after Jefferies

upgraded the Franco-Italian eyewear maker to "buy" from "hold".

Kemira fell 8.1% after the Finnish chemical

solutions maker missed fourth-quarter profit forecasts.

Focus was also on comments from U.S. Federal Reserve Chair

Jerome Powell who said the central bank was in no rush to cut

its short-term interest rate again.

(Reporting by Nikhil Sharma and Johann M Cherian; Editing by

Mrigank Dhaniwala, Arun Koyyur and Emelia Sithole-Matarise)