European Shares Join Global Rally As Trade Tensions Ease
European stocks joined a global relief rally on Friday after U.S. President Donald Trump and Chinese President Xi Jinping have expressed optimism about resolving their bitter trade disputes ahead of a high-stakes meeting at the end of November in Argentina.
Investors shrugged off Apple’s disappointing results and looked ahead to the U.S. jobs report for October due later in the day for further direction.
The pan-European Stoxx Europe 600 index was up 1 percent at 366.72 in opening deals after rising 0.4 percent the previous day.
The German DAX and France’s CAC 40 index were up around 1.2 percent, while the U.K.’s FTSE 100 was moving up 0.7 percent.
Easing of trade tensions helped lift automakers, with BMW, Daimler, Volkswagen, Renault and Peugeot climbing 1-4 percent.
Banks also traded sharply higher as investors awaited the stress test results for the region’s biggest lenders to be published later today by the European Central Bank. Commerzbank, Deutsche Bank, BNP Paribas, Credit Agricole and Societe Generale rallied 1-2 percent.
ArcelorMittal jumped 4.6 percent after it agreed to the binding offer from Liberty House Group for the acquisition of ArcelorMittal Dudelange (Luxembourg) and certain finishing lines at ArcelorMittal Liège (Belgium).
Enterprise software company Sage Group jumped 3 percent in London. The company’s board has appointed Steve Hare to the role of Chief Executive Officer with immediate effect.
Bookmaker chain Paddy Power Betfair advanced 1.5 percent after its Q3 revenue rose 12 percent on a constant currency basis.
IAG gained 1.4 percent. The British Airways parent projected EBITDAR of about 7.2 billion euros average per annum for 2019-2023, compared to 6.5 billion euros average per annum for 2018-2022 previously.
In economic news, final data from IHS Markit showed that the euro area manufacturing sector expanded at the slowest pace in more than two years in October.
The manufacturing Purchasing Managers’ Index for Eurozone fell to a 26-month low of 52.0 from 53.2 in September. The flash reading released on October 24 was 52.1.
U.K. construction sector growth unexpectedly improved in October on a strong rebound in civil engineering, despite slower demand and business optimism at a 6-year low, survey data from IHS Markit showed.
The IHS Markit/CIPS UK construction PMI rose to 53.2 from 52.1 in September. Economists had expected a score of 52.
Source: Read Full Article