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European Shares Rebound On Brexit Deal Hopes

stockmarkets jan02 09oct19 lt

European stocks rebounded on Wednesday as focus shifted to earnings and the British government signaled that it intends to bring a revised Brexit deal back to Parliament.

According to a report in The Times, the EU is ready to make a major concession on a Brexit deal by providing a mechanism for the Northern Irish assembly to leave a new Irish backstop after a set number of years.

Meanwhile, the Bank of France today retained its growth forecast for the third quarter. According to the monthly survey, the economy is set to expand 0.3 percent in the third quarter, unchanged from the previous estimate.

The pan European Stoxx 600 was up half a percent at 380.59 after losing 1.1 percent in the previous session.

The German DAX rose over 1 percent, France's CAC 40 index was gaining 0.7 percent and the U.K.'s FTSE 100 was moving up 0.4 percent.

Shares of Pressure Technologies soared 12 percent after the specialist engineering group announced a major contract win from EDF Energy.

GVC Holdings rallied 3 percent. The global sports-betting and gaming group has raised its full-year core earnings forecast.

AMG Advanced Metallurgical Group N.V., a global critical materials company, surged almost 4 percent after it signed an agreement to acquire the assets of International Specialty Alloys from Kennametal, Inc.

Dutch online food delivery company Takeaway.com rose 1 percent after reporting a surge in quarterly orders.

Elsewhere, Asian markets fell broadly as hopes for a resolution to the U.S.-China trade dispute faded, offsetting comments by Fed Chair Jerome Powell about expanding balance sheet.

U.S. stock index futures rose ahead of crucial U.S.-China trade talks set to begin on Thursday.

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