European Markets Jump On Hopes For US-China Trade Deal

BRUSSELS/FRANKFURT/PARIS (Alliance News) - After struggling at the start of the trading week, ...

Alliance News 8 January, 2019 | 5:04PM
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BRUSSELS/FRANKFURT/PARIS (Alliance News) - After struggling at the start of the trading week, European markets ended Tuesday's session firmly in positive territory.

Gains were fueled by hopes for a trade agreement between the US and China.

The high level trade discussions entered their second day Tuesday. In a post on Twitter, US President Donald Trump claimed, "Talks with China are going very well!"

Meanwhile, a partial shutdown of the US government remains in place. Trump is scheduled to deliver a national address on what his administration has described as a "crisis" on the southern border later today.

The pan-European Stoxx Europe 600 index advanced 0.88%. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.72%, while the Stoxx Europe 50 index, which includes some major UK companies, added 0.70%.

The DAX of Germany climbed 0.52% and the CAC of France rose 1.15%. The FTSE 100 of the UK gained 0.74% and the SMI of Switzerland finished higher by 1.10%.

In Paris, Carrefour rallied 2.72% after Bank of America Merrill Lynch upgraded its rating on the stock to Buy.

In London, Rolls-Royce Holding jumped 4.99% after Britain's Serious Fraud Office (SFO) dropped its investigation of some individuals associated with the company.

Wm Morrison Supermarkets fell 3.21% after a disappointing trading update as it reported a sharp slowdown in sales growth at its stores over Christmas.

Sika AG declined 3.99% in Zurich after reports that it will buy its French rival Parex in a USD2.55 billion deal.

Eurozone's economic sentiment decreased more-than-expected in December to its lowest level since the start of 2017, survey data from the European Commission showed on Tuesday. The economic sentiment index dropped to 107.3 from 109.5 in November. Economists had predicted a score of 108.2.

Germany's industrial production unexpectedly decreased for a third straight month in November, amid a sharp fall in consumer goods and energy output, worsening fears of a technical recession in the biggest euro area economy.

Overall industrial production fell a calendar and seasonally adjusted 1.9% from October, when it decreased 0.8%, revised from 0.5%, preliminary data from the Federal Statistical Office showed on Tuesday.

Economists had expected a 0.3% increase. The latest decline was the biggest since a 2.3% slump in July.

France's merchandise trade deficit widened sharply in November and was worse than economists' forecast, preliminary figures from the French Customs showed on Tuesday. The visible trade deficit rose to EUR 5.1 billion from EUR 4.1 billion in October. Economists had expected a shortfall of EUR 4.9 billion for November. A year ago, the deficit was EUR 5.96 billion.

UK house price inflation accelerated in December after slowing in the previous month, though house price growth for 2018 remain thin, survey data from Halifax showed. House price rose 1.3% year-on-year in the three months to December, which was faster than the 0.3% growth in the three months to November. Economists had expected a 0.4% increase.

Copyright RTT News/dpa-AFX

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