Monday 22 July 2019

European shares up on China move

Traders work on the floor of the New York Stock Exchange (NYSE). Photo: Reuters
Traders work on the floor of the New York Stock Exchange (NYSE). Photo: Reuters


EUROPEAN shares bounced on Tuesday after China signalled more stimulus measures to soften the blow from a tariff war with the United States, triggering relief in trade-sensitive tech, mining, and car stocks as some results also impressed. The pan-European STOXX 600 was up 0.3pc near the close of the session.

Overall economic sentiment in the eurozone has slumped over the past months - in December the European Commission's sentiment indicator fell to its lowest ebb since 2012.

Sectors reliant on trade and exports to China, such as tech, industrials, basic resources, and autos, were the top gainers on Tuesday though they pared gains fast after the open.

Some investors were doubtful this stimulus would have much impact on European exporters.

"To give a real boost to European exporters, we would need more than just an announcement on tax cuts, we would need commitments to infrastructure investment [from China]," said Martin Moeller, co-head of Swiss and global equity portfolio management at Union Bancaire Privee in Geneva.

Ireland's Iseq Overall Index was 0.6pc lower at 5,637 just moments from the close. The biggest decliner was software firm Datalex, whose shares collapsed as much as 63pc after it said it may have misstated its first-half 2018 results. Ryanair was 1.8pc lower at €10.09 as the end of the session approached, while Glanbia had retreated 5.2pc to €15.75.

The UK's Ftse-100 was up 0.7pc near the end of trading. Germany's DAX was up 0.2pc. France's CAC-40 was 0.4pc higher.

Irish Independent

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