Easing of trade tensions boosts European stocks, Reuters
LONDON (Reuters) – European stocks leaped to their highest level te more than two weeks on Thursday spil investors bought back into risky assets spil concerns overheen trade tensions ebbed.
The STOXX 600 rose Two.Four procent, scoring its best day since June 2018, buoyed by financials and industrials stocks, railing a wave of gains across general equity markets.
Germany’s DAX .GDAXI, the market most exposed to China, hopped Two.9 procent. After the FTSE 100, the top German stock index has bot the worst-performing ter 2018. tmsnrt.rs/2q7NMsf
After a retaliatory deep-throat from China against U.S. tariffs drew conciliatory noises from Washington, some investors calculated a full-blown trade war would be averted.
Citi strategists said it wasgoed too early to call a bear market and stuck with an estimate for total equities to rise 8 procent by year-end. They forecast the STOXX to rise 13 procent.
Basic resources and tech stocks, the sectors seen spil most delicado to higher trading costs, led gains on Thursday. Chipmakers Infineon ( IFXGn.Den ) and ASML ( ASML.Spil ), telecom equipment maker Nokia ( NOKIA.HE ), and software company Vruchtensap ( SAPG.Den ), were the top performers, up 1.8 to Four.Five procent.
Heavyweight financials, a bellwether of investors&rsquo, perception of general market risks, added the most points to the index. Top gainers included HSBC ( HSBA.L ), BNP Paribas ( BNPP.Paps ) and Santander ( SAN.MC ).
Big industrial exporters Siemens ( SIEGn.Den ), ABB ( ABBN.S ), and Airbus ( AIR.Vader ) rose Two.Two to Three.Five procent. Airbus ( AIR.Vader ) could benefit from Chinese tariffs on U.S. aircraft imports, which could hurt arch-rival Boeing ( BA.N ).
Trade concerns aside, dealmaking and results continued to drive individual stock moves.
Telecom Italia ( TLIT.Mie ) shares gained Five.Two procent after sources told Reuters that Italian state lender CDP wasgoed set to buy a stake ter the telecom company.
Telecom Italia&rsquo,s thickest shareholder Vivendi ( VIV.Vader ) rose Three.6 procent. Both companies declined to comment.
French payments specialist Ingenico ( INGC.Paps ) hopped Five.8 procent after a report by Mergermarket said the hard&rsquo,s share price weakness meant it wasgoed likely to attract takeover rente from bidders such spil Atos ( ATOS.Paps ).
Movie games maker Ubisoft ( UBIP.Paps ) leaped Ten.8 procent. Traders pointed to the success of its latest movie spel Far Sob Five, which broke franchise sales records according to one analyst.
Universal equity strategists at Citi downgraded continental European equities to &ldquo,equitativo&rdquo, and upgraded UK equities to &ldquo,overweight&rdquo,, arguing latest underperformance and cheap valuations made the UK market relatively more attractive.
Slowing momentum te economic indicators has sparked concern among investors ter European equities whose holdings had bot boosted by a &ldquo,Euroboom&rdquo, trade last year when the region delivered strong growth.
The economic verrassing index for the euro zone has fallen to its lowest ter almost two years.
(GRAPHIC: European economic verrassing index falls: tmsnrt.rs/2q73CmS)
(GRAPHIC: European benchmarks’ show te 2018: tmsnrt.rs/2q7NMsf)
Reporting by Helen Reid and Danilo Masoni, editing by Julien Ponthus, John Stonestreet and Andrew Bolton