UPDATE 1-European shares rise as trade relief rally shows it has legs


Devdiscourse News Desk | Updated: 21-09-2018 15:45 IST | Created: 21-09-2018 14:36 IST
UPDATE 1-European shares rise as trade relief rally shows it has legs

European shares rose strongly on Friday morning, extending their gains from the previous session as a relief rally due to easing fears of a trade war helped Wall Street to hit record highs, while Asian shares also climbed further overnight.

At 0825 GMT, euro zone blue chips were up 0.9 percent and heading into a 10th straight session of gains, a performance not seen since 1997.

Germany's DAX, home to some of the continent's mightiest exporters, was also up 0.9 percent while autos, miners, and banks were the top gainers across European bourses.

Hopes that the trade war won't get out of control boosted European car makers while rising commodities prices and higher yields also pushed basic materials and financial shares up.

Real estate was the only sector in the red, with a decline limited to 0.02 percent.

"Markets in Europe which had until recently diverged from U.S. markets are also set to enjoy a decent week with the DAX hitting its highest levels this month, as well as a second successive weekly gain," said CMC Markets analyst Michael Hewson.

Data showing euro zone business growth easing again in September - yet another sign that momentum in the currency bloc has passed its peak - had little, if no impact on trading.

Within the pan-European STOXX 600, shares in British industrial technology firm Smiths posted the worst performance, dropping 7.1 percent after its full-year profit missed analysts' estimates.

Just Eat lost 6.1 percent after a report said Uber was in early talks to buy Deliveroo, potentially giving it a major rival in the food delivery business.

"The combination of two competitors is the last thing Just Eat wants to hear, particularly when it is already trying to play catch up on the delivery side of its business," commented Russ Mould, investment director at AJ Bell.

Belgium's Nyrstar tumbled over 30 percent after it issued a profit warning, saying revenues would be hurt by adverse market conditions.

German retailer Metro jumped 4.4 percent as Czech investor Daniel Kretinsky is buying more shares in the company, stoking speculation of a full bid.

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