Wednesday 16 January 2019

US-China trade talks boost European shares as commodity stocks, banks rally

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Independent.ie Business Desk

Independent.ie Business Desk

News of talks between Beijing and Washington over an ongoing trade war between the world's biggest economies boosted European shares on Friday after a gloomy week during which a rare revenue warning from Apple caused havoc.

Stocks sensitive to developments in the trade war, like carmakers, industrials, and miners, boosted the market while bank shares also rallied after China announced it would hold vice ministerial trade talks with the US on January 7th-8th.

The mining sector jumped 2pc, the top gainer as copper prices recovered thanks to the trade talks, while autos rose 1pc and banks climbed 1.3pc.

Oil stocks also rallied 1.8pc after news of the China-US trade talks boosted crude prices more than 1pc.

Overall Europe's STOXX 600 rose 0.8pc while Germany's DAX jumped 1pc and the leading euro zone stocks index gained 0.9pc.

Outside trade-related moves, Bayer shares climbed 2.4pc to top the DAX after a US judge overseeing lawsuits alleging its glyphosate-based weed killer causes cancer issued a ruling that could restrict evidence the plaintiffs consider crucial to their cases.

Tech stocks, which plunged 4pc after Apple’s revenue warning, rose 0.6pc on Friday - still underperforming the market.

Chipmaker AMS, which provides the facial recognition technology used in the latest iPhone, rose 1.3pc - a hesitant recovery after Thursday’s 23pc plunge.

Reuters

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