European shares rise on trade-fueled optimism, London shines
European shares rose on Friday, with London stocks outperforming due to a weaker pound, while hopes of a quick resolution to the U.S.-China trade war offset worries of slowing economic growth and rising political risks.
The pan-European STOXX 600 index rose 0.5%, with export-heavy London's FTSE 100 up almost 1%, led by gains in oil majors and miners. The United States and China are prepping for another round of high-level trade talks scheduled for Oct. 10 and 11 in Washington, aimed at resolving their near 15-month long trade dispute.
The European basic resources sector jumped 1.4%, powered by a rise in shares of Norwegian aluminum company Norsk Hydro, which gained 1.9% after a Brazilian court lifted its final production embargo on the company's key plant. However, shares of semiconductor companies Infineon, AMS, and ASM International came under pressure after a profit warning from U.S. chipmaker Micron Technology Inc.
Tech stocks edged 0.1% higher, posting some of the smallest gains among the major European sub-sectors.
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