Left Menu
Development News Edition

UPDATE 1-European shares tick up as U.S.-China trade deal offers some relief

Reuters | Updated: 16-01-2020 14:59 IST | Created: 16-01-2020 14:52 IST
UPDATE 1-European shares tick up as U.S.-China trade deal offers some relief
Representative image Image Credit: Flickr

European shares rose on Thursday after the United States and China signed an eagerly awaited Phase 1 trade deal, giving some relief to markets that have been roiled by the 18-month standoff between the world's two largest economies.

The pan-European STOXX 600 index was up 0.3% by 0857 GMT. The deal, signed in Washington on Wednesday, still raises questions over the daunting purchase commitments of U.S. goods by China, while leaving existing tariffs in place.

However, the prospect of no further escalation in the economically damaging trade war encouraged a slight risk-on mode. "The details that were released after the signing was pretty much in line with what markets expected. There wasn't anything suggesting that the deal would over-deliver," said Simona Gambarini, markets economist with Capital Economics in London.

European utility stocks touched their highest levels since late-2008 on strength in power generator RWE AG. Shares of the company rose amid reports that the German government plans to compensate RWE with around 2.6 billion euros ($2.9 billion) for costs related to the country's planned coal exit. The European retail subindex gained 0.6%, led by an 11% rise in German meal-kit delivery company HelloFresh after it flagged a stronger 2019.

The stock was also the best performer on the STOXX 600. German shares rose 0.4% after closing lower a day earlier on dismal GDP data.

Economic growth in the euro zone's largest economy slowed sharply in 2019, highlighting the widespread impact of the trade war on demand for exports from the manufacturing-heavy country. Oil and gas stocks rose, tracking a rise in oil prices as the trade deal pointed to more Chinese purchases of American energy products, while a drop in U.S. crude inventories also helped.

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



China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....


Latest News

Japanese PM faces mounting pressure over pandemic response

Japanese Prime Minister Yoshihide Suga faced renewed pressure on Monday over his handling of the coronavirus pandemic, with a new opinion poll showing many believed the government was too slow to respond to the latest wave of infections. Op...

We weren't at our absolute top, made decisive mistakes: Klopp after defeat against Man Utd

Liverpool manager Jurgen Klopp admitted that his side was not at their absolute top and made decisive mistakes which led to the defeat against Manchester United. Liverpool faced a 3-2 defeat against Manchester United in the FA Cup here on S...

Delhi witnesses low visibility due to fog

The India Meteorological Department IMD on Monday said there was moderate fog in the national capital and dense to very dense fog in several parts of the country. Various parts places in north-India including Delhi witnessed low visibility ...

India, China hold marathon military talks on disengagement of troops in eastern Ladakh

The ninth round of military talks between India and China lasted for nearly 16 hours as the two sides held detailed deliberations on disengagement of troops from all friction points in eastern Ladakh, sources said on Monday.The Corps Comman...

Give Feedback