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European Shares Broadly Higher On Hopes Of Brexit Deal

stockmarkets dec21 15oct19 lt

European stocks rose on Tuesday to reach two-week highs, with renewed optimism over Sino-U.S. trade relations and expectations that a Brexit deal could be reached this week helping underpin investor sentiment.

The pound held near recent multi-month highs against the euro and dollar after EU Brexit negotiator Michel Barnier said that securing a Brexit deal at this week's EU summit will be difficult but "still possible".

According to Irish broadcaster RTE, the United Kingdom would make new Brexit proposals today in a last-ditch bid to secure a Brexit deal.

The pan European Stoxx 600 was up 0.4 percent at 391.12 after declining half a percent the previous day.

The German DAX was also up 0.4 percent and France's CAC 40 index was gaining half a percent while the U.K.'s FTSE 100 was marginally lower.

German cloud and ICT provider QSC rallied 3 percent after it reported sequential rise in Q3 revenue, following the sale of its telecommunications subsidiary Plusnet.

Wirecard shares plunged as much as 17 percent. According to the Financial Times, the financial services provider had appeared to fraudulently inflate sales and profits at businesses in Dubai and Ireland.

British brewer and pub operator Marston slumped 8 percent as it flagged lower annual pretax profit due to a fall in food sales at some of its pubs.

Housebuilder Bellway lost 7 percent as it warned of more pronounced pressure on profit margins in its new financial year.

Recruiter Hays jumped 5.2 percent after delivering a "solid" third quarter of modest growth.

ASML advanced 1.7 percent after reports that Samsung will agree to buy high-end lithography machines from the Dutch semiconductor equipment manufacturer.

In economic releases, the German ZEW economic sentiment index for October came in at -22.8 as compared to -27.0 expected.

The Euro-zone ZEW economic sentiment indicator for October arrived at -23.5 vs. -33.0 expected.

France's consumer price inflation slowed to 0.9 percent in September from 1 percent in August, final data from the statistical office Insee revealed. The rate came in line with expectations.

The U.K. unemployment unexpectedly ticked higher in the three months to August, data from the Office for National Statistics showed.

The number of people in work fell 56,000 to 32.69 million while the level of unemployment increased by 22,000 to 1.31 million in three months to August.

The jobless rate rose to 3.9 percent, while it was expected to remain unchanged at 3.8 percent.

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