logo
Plus   Neg
Share
Email

European Markets Rally On Tariff Delay

The major European shook off a soft start and moved higher on Tuesday in a kneejerk reaction after U.S. Trade Representative Robert Lighthizer announced a delay in imposing new tariffs on certain Chinese products.

The announcement comes less than two weeks after U.S. President Donald Trump announced plans to impose a 10 percent tariff on the remaining $300 billion worth of Chinese imports, sparking a global stock market sell-off.

Lighthizer said the 10 percent tariff set to take effect on September 1st should be delayed until December 15 for certain products, sparking a relief rally.

Germany's DAX climbed 70.45 points or 0.60 percent to finish at 11,750.13, while London's FTSE added 24.18 points or 0.33 percent to 7,250.90 and the CAC 40 in France rose 52.77 points or 0.99 percent to 5,363.07.

The lower open was fueled by concerns over the political unrest in Hong Kong and electoral uncertainty in Argentina and in Italy.

In Germany, Henkel AG plummeted 7.12 percent, while Deutsche Lufthansa plunged 2.09 percent, Bayer soared 1.88 percent, Infineon Technologies spiked 1.66 percent, Deutsche Bank jumped 1.30 percent, Daimler climbed 1.18 percent and Deutsche Telekom advanced 0.87 percent.

In London, Auto Trader Group plummeted 2.57 percent, while Antofagasta surged 2.55 percent, Scottish Mortgage Investment soared 2.08 percent, Royal Dutch Shell spiked 1.51 percent, Prudential perked 1.39 percent, Vodafone advanced 1.23 percent and Tesco lost 1.15 percent.

In France, Societe Generale surged 2.71 percent, while TOTAL soared 2.29 percent, Sanofi spiked 2.14 percent, BNP Paribas jumped 1.78 percent, Credit Agricole climbed 1.40 percent, Carrefour fell 0.73 percent, Peugot lost 0.25 percent and Vivendi rose 0.67 percent.

In economic news, Germany's investor confidence dropped sharply in August to its lowest level since the end of 2011, the ZEW - Leibniz Centre for European Economic Research reported.

Also, the U.K. unemployment rate increased by 0.1 percent to 3.9 percent in three months to June while average earnings grew at the fastest pace in 11 years, the Office for National Statistics said.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT