Left Menu
Development News Edition

UPDATE 1-Trade optimism, rosy earnings send European shares to 4-year peak


UPDATE 1-Trade optimism, rosy earnings send European shares to 4-year peak
Image Credit: PxHere

European shares rose for the fifth straight session on Thursday and hit their highest in four years as investors cheered signs of progress in U.S.-China trade talks and largely positive earnings reports from a host of companies. Shares of Siemens hit their highest in more than a year after the German industrial company beat fourth-quarter profit expectations, while Lufthansa jumped 6.5% on plans to cut costs at some of its units to revive profit.

The German airline's shares boosted the wider travel and leisure index by 1.4%, making it one of the top gainers among the major European sub-sectors. "Most market-optimism this week has been induced by the increasing chances of a mini trade deal between the U.S. and China," said Timme Spakman, a trade economist at ING.

"There are still hurdles to be (crossed) but it is positive that not only U.S. officials are optimistic but Chinese negotiators are sending positive signals as well." China and the United States have both agreed to cancel in phases the tariffs imposed during their prolonged trade war, the Chinese commerce ministry said.

The news sparked a broad-based rally in Europe on Thursday, with trade-sensitive Frankfurt shares rising 0.7% to their highest level since February 2018. It also helped investors shrug off another weak data point from Germany showing industrial output fell more than expected in September.

All eyes will now be on a Bank of England meeting later in the day, where the central bank is expected to hold interest rates steady ahead of a snap election in the UK on Dec. 12 to decide the fate of Brexit. The FTSE midcap index and Irish stocks gained 0.76% and 1.22%, respectively.

The pan-European STOXX 600 index rose 0.4%. It is now 2% away from its record high, last hit in April 2015. Among the top gainers across European sub-sectors were automakers and miners, while defensive plays such as telecoms and utilities fell, suggesting higher risk appetite.

Italy's biggest bank UniCredit rose 4.7% after posting a 26% rise in adjusted net profit in the third quarter, while the world's largest steelmaker, ArcelorMittal, jumped 7.2% on better-than-expected results. Shares in wind turbine maker Vestas jumped 9.7% to the top of the STOXX 600 after it reported a forecast-beating quarterly operating profit.

But Commerzbank AG fell 2.5% after the German bank warned that its 2019 profit would come in lower than last year. German broadcaster ProSiebenSat.1 Media tumbled 7.8% after its third-quarter core profits fell by 35% as a decline at its core television advertising business accelerated.

Also Read: UPDATE 3-Lufthansa crew strike set to go ahead on Thursday after court ruling

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


TRENDING

OPINION/BLOG/INTERVIEW

JNU Administration's 100-meter challenge before JNUSU

For the first time in its history, Jawaharlal Nehru University JNU Administration is seeking permanent deployment of local police to keep protesting students at 100 meters away from the Administrative Block. It would be interesting to see h...

Sentiment Analysis of Twitter users during COP25: Governments losing trust on Climate Action

Sentiment analysis of Twitter users during COP25 in Madrid, being held from December 2-13, shows widespread fear on climate change due to global warming but almost no trust on governments in meeting the emission targets. In the analysis the...

These innovators are making humanitarian response more efficient

These alarming trends prompt a call for the world to not only address the ongoing crisis but also to adopt innovative approaches to fulfill the growing humanitarian needs in such emergencies. ...

Hyderabad Encounter: A sentiment analysis of public mood on day of encounter

Sentiment analysis of twitter users revealed that they showered salutes on Hyderabad police for eliminating alleged gang rapists of the veterinary doctor but only a few believe in cops version of successive events leading to encounter....

Videos

Latest News

Gandhi family believes that nobody else has given sacrifices for the nation: Ram Naik

Slamming Congress leader Rahul Gandhi for his recent my name is not Rahul Savarkar remark that sparked a controversy and invited sharp criticism from political quarters, BJP leader Ram Naik alleged that Gandhi family believes that nobody el...

Italian city evacuates 54,000 people to defuse WW2 bomb

Around 54,000 people were evacuated from the southern Italian city of Brindisi on Sunday as experts worked to defuse a World War Two bomb, authorities said. Corriere della Sera daily said the operation was the biggest peacetime evacuation i...

Internet services suspended temporarily in some parts of West Bengal

Internet services have been suspended temporarily as a precautionary measure in some districts of West Bengal, sources said. The internet was suspended in some parts of the districts of Uttar Dinajpur, Malda, Murshidabad, Howrah, North 24 P...

Coal Min to set up 'Sustainable Development Cell' for mining to address environmental concerns

The Coal Ministry on Sunday said it will establish Sustainable Development Cell SDC for promoting sustainable coal mining in the country and address environmental concerns at closure of mines. The SDC envisages to address environment mitiga...

Give Feedback