Left Menu
Development News Edition

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


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.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION/BLOG/INTERVIEW

From home to healthcare, here are Robotic innovations transforming lives

Lovot is equipped with more than 50 sensors such as thermography, microphone array, obstacle detection, and touch sensor to generate motion and emotions in real-time....

Translating words to deeds: Achieving gender parity in access to financial resources

... ...

SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...

SDG2030: Challenges of technological applications in advancing Global Goals

Application of contemporary and future information technologies may go milestones in advancing sustainable development goals SDGs provided the challenges are overcome and implementation is ensured....

Videos

Latest News

US Domestic News Roundup: Bloomberg vows to narrow wealth gap; Alaska volcano spews thick ash cloud and more

Following is a summary of current US domestic news briefs.Democrat Bloomberg vows to narrow wealth gap for black AmericansDemocratic presidential candidate Michael Bloomberg on Sunday pledged to narrow the wealth gap between black and white...

Pompeo meets Juan Guaido, hails his 'tireless efforts to restore democracy in Venezuela'

US Secretary of State, Mike Pompeo on Monday local time met Venezuelas opposition leader Juan Guaido and termed his tireless efforts to restore democracy in the country as an inspiration. Honored to meet Interim President JGuaido at the 3rd...

Japan may delay process for picking casino host cities - media

The Japanese government is considering delaying the process for selecting casino host cities amid a bribery scandal that has seen the arrest of a ruling-party lawmaker, the Asahi and other local media reported on Tuesday. The government had...

UPDATE 3-Children go missing as Central American migrants clash with Mexican forces

Mexican security forces fired tear gas at rock-hurling Central American migrants who waded across a river into Mexico earlier on Monday, in a chaotic scramble that saw mothers separated from their young children. The clashes between hundred...

Give Feedback