Trade deal optimism lifts European shares further as auto, tech rally
European shares rose further on Wednesday with the export-oriented autos and tech sectors leading the way on growing optimism over a possible trade deal between the U.S. and China.
The pan-European benchmark hovered around its highest level in around three weeks, up 0.7 per cent by 0841 GMT, while the UK’s FTSE hit its highest in five weeks, up 0.6 per, and Germany’s DAX was up 0.9 per cent.
Chinese and U.S. teams ended trade talks in Beijing on Wednesday that lasted longer than expected and officials said details will be released soon, raising hopes an all-out trade war that could badly disrupt the global economy can be avoided.
Autos .SXAP rose 2.5 per cent, making them the biggest sectoral gainer in early deals, while tech .SX8 stocks added 1.4 per cent, shrugging off reports that Apple had cut planned first-quarter production for its three new iPhones.
AMS, however, which is more exposed exposure to the newest iPhone models, fell 4.2 per cent to the bottom of the STOXX 600,
further hit by a downgrade at Credit Suisse.
Luxury stocks, which are heavily exposed to the China, were also in demand with LVMH up 1.7 per cent, on expectations a trade deal could ease pressure on the slowing Chinese market.
TGS fell 2.4 per cent after the Oslo-listed seismic surveyor posted a smaller-than-expected increase in quarterly revenues and cautioned on exploration spending this year.
Britain’s third-largest builder Taylor Wimpey said indicators for 2019 sales were solid, sending its shares up 3.9 per cent. (Reuters/NAN)