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European Shares Extend Gains On Trade-truce Hopes

asian market 100912 04nov19

European stocks rose on Monday to extend gains from the previous session amid renewed optimism over U.S.-China trade talks.

Tariff-exposed automakers and commodity-related mining stocks led the surge after U.S. Commerce Secretary Wilbur Ross told Bloomberg that licenses would be released "very shortly" for U.S. firms to sell components to Huawei Technologies Co.

Ross also said that there was "no natural reason" why a "phase one" trade deal with China couldn't be reached this month.

In economic releases, a measure of Eurozone manufacturing was finalized at 45.9 in October, up from September's seven-year low reading of 45.7.

The pan European Stoxx 600 rose half a percent to 401.45 after climbing 0.7 percent on Friday to settle at its highest level since Jan. 29, 2018.

The German DAX, France's CAC 40 index and the U.K.'s FTSE 100 were up between half a percent and 0.8 percent.

Automaker Daimler Group jumped 2.8 percent after launching its new corporate structure on November 1, 2019. BMW, Volkswagen, Renault and Peugeot were up 2-4 percent.

Miners Anglo American, Antofagasta and Glencore were up 2-3 percent.

German medical-equipment maker Siemens Healthineers jumped 5 percent after reporting a rise in net profit and revenue during the fourth quarter of the year.

Lubricant manufacturer Fuchs Petrolub rallied 2.6 percent. The company has agreed to buy the business of ZIMMARK INC.

Lender Deutsche Bank climbed more than 3 percent after it appointed Claudio de Sanctis as Global Head of Deutsche Bank Wealth Management, succeeding Fabrizio Campelli who joins the group Management Board as Chief Transformation Officer.

Struggling baby goods retailer Mothercare slumped 27 percent after saying it is planning to call in administrators to the troubled firm's U.K. business.

Budget airline Ryanair Holdings soared 6 percent as it reported higher second-quarter profit despite rising fuel and staff costs.

Saint-Gobain advanced 1.3 percent. The company said that its French subsidiary Placoplatre has reached an agreement with HIRSCH Servo Group and BEWiSynbra Group to sell its expanded polystyrene business in France.

International Cons Airlines Group rose 1.6 percent. The company announced that its unit IB OPCO Holding S.L. or Iberia would acquire Spanish private airline Air Europa for 1 billion euros in cash.

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