International Development News
Development News Edition
Give Feedback

European shares rise in cautious trade, FTSE shines


Reuters
Updated: 02-09-2019 14:25 IST
European shares rise in cautious trade, FTSE shines

Image Credit: Flickr

European shares opened higher on Monday, driven by a rally in miners, while sentiment remained fragile as the United States and China kicked off the latest round of tit-for-tat tariffs on each other's goods.

Britain's FTSE 100's 0.4% jump led gains, with mining majors such as BHP and Rio Tinto rising on a surge in iron ore prices overnight in top consumer China. Iron ore prices were supported by a pledge on Saturday from Beijing to beef up investment in infrastructure projects and regional development to support a slowing economy. Meanwhile, Washington's 15% tariffs on a variety of Chinese goods came into effect on Sunday, while China began to implement new duties on a $75 billion target list.

However, both sides will still meet for talks later this month, U.S. President Donald Trump said. Trade-sensitive German shares were up 0.1% and the pan-European stocks benchmark index STOXX 600 rose 0.3% by 0714 GMT, beginning September higher after a 1.6% drop in August as the trade war, which has roiled financial markets and raised global recession fears, rages on for more than a year.

With U.S. markets shut for a local holiday, volumes are expected to thin. A slew of official and private manufacturing numbers from the eurozone expected during morning trade may also sway markets. These will come after data from China painted a bleak outlook for its factories.

Also Read: UPDATE 1-Basketball-Australia snap United States' 13-year winning streak

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)