Thursday 20 June 2019

Europe's bourses gain on optimism

Traders work at their desks whilst screens show market data at CMC Markets in London. Photo: Reuters
Traders work at their desks whilst screens show market data at CMC Markets in London. Photo: Reuters

Reuters

European shares hit a three-week high yesterday in a broad-based rebound as hopes of a possible trade deal between China and the US offset worries over global growth.

The pan-European Stoxx 600 benchmark jumped 1.1pc soon before the close, with all major European indices in the black just minutes before the session ended.

That included Germany's export-oriented DAX, which is particularly sensitive to trade issues. It shrugged off earlier data showing that German industrial output fell unexpectedly in November for a third month running.

"The main driver of this optimism appears to be the ongoing trade talks between the US and China in Beijing," said Spreadex analyst Connor Campbell.

"Not that there is anything too substantial to justify such positivity, but rather a lack of mood-dampening comments has green-lit an early European rebound," he said.

Strength among retailers also propped up the market.

In Ireland, the Iseq Overall Index was 0.7pc higher at 5,692 as trading neared its close. Movers included packaging giant Smurfit Kappa, which had soared 6.7pc to €24.68. Cairn Homes was 4.3pc higher at €1.20, while peer Glenveagh Homes was up 3.8pc at 81 cent. But Irish builder Abbey, which generates the bulk of its home sales in the UK, declined 7pc to €13.00.

The UK's FTSE-100 advanced 1.1pc. Germany's DAX was 0.9pc higher and France's CAC-40 had gained 1.6pc just before the close.

UK grocery chain Morrison fell as it missed its Christmas sales forecast.

Irish Independent

Also in Business