logo
Plus   Neg
Share
Email

European Markets Close Higher Amid Renewed Trade Optimism

European stock markets ended mostly higher on Tuesday, with stocks staging a fairly strong comeback after losing heavily and falling to two-month lows in the previous session.

Bargain hunting and optimism that the U.S. and China will eventually work out a solution to end their trade dispute pushed stock prices higher.

The pan European Stoxx 600 ended up 0.92%. Among the major markets in Europe, France ended sharply higher, with its benchmark CAC 40 rising 1.41%. The U.K.'s FTSE 100 and Germany's DAX ended higher by 0.95% and 0.82%, respectively. Switzerland's SMI gained 0.32%.

Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Italy, Norway, Portugal, Russia, Spain, Sweden and Turkey all ended on a bright note.

Iceland, Poland and Ukraine settled weak.

Although the Office of U.S. Trade Representatives is reportedly working out necessary legal process to impose further duties on Chinese goods, President Donald Trump said on Monday that he was yet to decide on levying tariffs on an additional $300 billion worth of Chinese goods.

Markets were also benefiting from Trump's comments that a breakthrough with China, if it happens, would be announced in three to four weeks.

In Germany, Wirecard rose 3.7%. RWE, HeidelbergCement, Linde, Adidas, Allianz and SAP gained 1.8 to 2.6%. Volkswagen gained 1% on news it would simplify the group through full or partial sale of its unit MAN Energy Solutions and RENK.

Bayer declined 2% after a California court ordered the company to pay more than $2 billion in damages over allegations its Roundup weed killer causes cancer.

Thyssenkrupp and Merck were the other notable losers in the German market.

In France, STMicroElectronics jumped 6.5%. Atos, Kering, Louis Vuitton, Valeo, Airbus Group, Schneider Electric, Michelin, Capgemini, Peugeot and Vinci gained 2 to 4%.

Engie advanced 1.8% after the company backed its 2019 earnings outlook.

Renault lost more than 2% on reports that a French probe into alleged emissions cheating by the automaker is a step closer to possible court action.

British stocks Intu Properties, DCC, Rio Tinto, Tui, Antofagasta, Burberry Group, Micro Focus, Babcock International, Hargreaves Lansdown, Astrazeneca and Next rose sharply.

British bakery chain Greggs ended more than 11% up after raising its profit forecast for a third time this year.

In economic releases, Germany's economic sentiment weakened unexpectedly in May, survey data from the ZEW-Leibniz Centre for European Economic Research showed.

The economic sentiment index fell to -2.1 in May from +3.1 in April. The reading was expected to rise to 5.0.

Euro zone industrial production fell in March for a second straight month, in line with market expectations.

The U.K. jobless rate declined in the first quarter to the lowest since 1974, signaling continuing firming of the labor market.

For comments and feedback contact: editorial@rttnews.com

Follow RTT