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European Shares Surge On Emphatic Tory Election Win

stock up 13dec19

European stocks surged on Friday to hover near record highs and the pound staged its biggest rally in almost three years, after the ruling Conservative party secured a landslide victory in the snap election, ending the Parliamentary deadlock and making it possible to deliver Brexit by the end of January.

The results suggest that PM Johnson could push his Brexit deal through Parliament and take the United Kingdom out of the European Union by the January deadline.

The outcome is likely to bring an end to the Brexit deadlock in Parliament that has paralyzed the country.

Investors also cheered media reports suggesting that Washington has offered to slash existing tariffs and cancel new ones set to take effect Sunday as part of a deal to boost Chinese purchases of U.S. farm goods and obtain other concessions.

Reports say that the terms have been agreed but the legal text has not yet been finalized.

Both sides are yet to formally confirm the news ahead of a Sunday deadline, when new U.S. tariffs on $160 billion in Chinese goods will take effect.

The pan European Stoxx 600 jumped as much as 1.6 percent to 414.20 after rising 0.3 percent in the previous session.

The German DAX rallied 1.3 percent, France's CAC 40 index surged 1.2 percent and the U.K.'s FTSE 100 was up 1.7 percent.

Henkel AG & Co. KGaA tumbled 3.2 percent. The chemical and consumer goods company said it expects earnings to be negatively impacted in the fiscal year 2020 because of an uncertain industrial environment and investments in marketing and advertising.

Aareal Bank climbed 2.2 percent after its supervisory board approved renewal of the appointment of Chief Financial Officer Marc Hess as a member of the Management Board of the company early, until 31 December 2024.

Online food delivery service Delivery Hero soared 15 percent. The company has agreed to buy about 82 percent stake in South-Korean food delivery platform Woowa Brothers Corp. in cash and stock deal.

Gold miner Centamin rose nearly 2 percent. The company has announced the appointment of Ross Jerrard as interim Chief Executive Officer, effective immediately. The company also appointed James Rutherford as Deputy Non-Executive Chairman, effective January 1, 2020.

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