Plus   Neg

European Shares Rally As Trade Tensions Ebb


European stocks rallied on Monday after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on their escalating trade war, helping ease investor concerns over slowing global growth.

Traders also looked ahead to a week-long debate on the Brexit deal before a final vote in parliament on December 11.

The pan-European Stoxx Europe 600 index was up 1.9 percent at 364.29 in opening deals, on track for its strongest session in eight months.

The German DAX was climbing 2.6 percent, France's CAC 40 index was rallying 2.1 percent and the U.K.'s FTSE 100 was up 2.3 percent.

Miners Anglo American, Antofagasta and Glencore soared 6-9 percent while oil giant BP Plc advanced 2.6 percent and Tullow Oil added 5.4 percent.

German automakers BMW, Daimler and Volkswagen soared 5-7 percent after China agreed to slash auto import tariffs.

Banks also strengthened, with Commerzbank, Deutsche Bank, BNP Paribas and Societe Generale rallying 2-3 percent.

Standard Chartered jumped 4.2 percent in London on a Bloomberg report that the bank is cutting jobs in Dubai and key markets including Singapore as it looks to curb expenses.

Swiss drug major Novartis advanced 1.8 percent after the U.S. FDA accepted its
Biologics License Application for AVXS-101, now known as ZOLGENSMA, an investigational gene replacement therapy for the treatment of spinal muscular atrophy.

In economic releases, Eurozone's manufacturing growth slowed less-than-expected in November, amid marginal growth in output and weak business confidence, final data from IHS Markit showed.

The manufacturing purchasing managers' index fell to 51.8, the lowest since August 2016, from 52 in October. The flash reading was 51.5.

Elsewhere, U.K. manufacturing growth recovered from a 27-month low in November on the back of a rise in domestic new orders and stock-building, a survey showed. IHS Markit's Purchasing Managers Index for the industry rose to 53.1 from 51.1 in October.

For comments and feedback contact: editorial@rttnews.com

Follow RTT