EUROPE MARKETS: Germany's Stock Market Books Best Day In 4 Months As U.S.-China Trade Tensions Ease
December 03 2018 - 1:06PM
Dow Jones News
By Emily Horton
European stocks surge on U. S-China trade detente
European stock markets on Monday finished higher, tracking a
global relief rally, after the U.S. and China over the weekend
agreed to a pause trade-war antagonism at the G-20 summit in a
Argentina.
Resource, oil and auto stocks were among the big gainers.
What are markets doing?
The Stoxx Europe 600 jumped 1% to end at 361.18, after ending
down 1.1% on 357.5 late on Friday.
Germany's DAX (DAX) was the biggest gainer rising 1.9% to
11,465.46, marking its biggest one-day rise since July 26.
Meanwhile, Italy's FTSE MIB rose 2.2% to 19,622.36 and France's CAC
40 added 1% to close at 5,053.98, marking that benchmark's biggest
daily gain since Nov. 21. The U.K.'s FTSE 100 climbed by 1.2% to
7,062.41, having ended down 0.8% on Friday.
The euro rose to $1.1336 from $1.1320 late Friday in New York,
while the British pound grew to $1.2798 from $1.2752 late on
Friday.
What is driving the market?
Stocks around the globe rallied after Donald Trump and Chinese
President Xi Jinping agreed to a cease-fire at the weekend G-20
meeting, with the U.S. promising not to implement planned tariff
increases on a batch of scheduled Chinese exports worth $200
billion to the U.S.
Both leaders agreed to a 90-day truce between U.S. and China to
allow for further time to progress trade talks between the two
countries. Trump also said on Twitter that China will "reduce and
remove" tariffs on U.S. cars.
(http://www.marketwatch.com/story/trump-says-china-will-reduce-and-remove-40-tariffs-on-us-auto-imports-2018-12-02)
Also supporting major indexes, crude prices rallied 4%
(http://www.marketwatch.com/story/crude-prices-rally-4-as-russia-saudis-signal-output-curbs-2018-12-03),
driven by a surprise decision by Canadian producers to cut output,
and comments from Russian President Vladimir Putin at the weekend
G-20. Putin said he and his Saudi Arabia counterpart have agreed to
extend their oil deal to manage supply
(http://www.marketwatch.com/story/putin-says-russia-saudis-agree-to-renew-opec-production-cuts-2018-12-02),
which drove optimism for the end-week OPEC meeting.
Which stocks were active?
German stocks saw the strongest one-day gain since April so far,
with both Daimler AG (DAI.XE) and BMW AG (BMW.XE) jumped by at
least 4.5%, while preferred shares of Volkswagen AG's preferred
shares (VOW.XE) rose 2.9% and German-listed common shares (VOW.XE)
(VOW.XE) climbed by 2.2%.
As China is a big user of natural resources, those stocks also
saw a strong day, with Antofagasta PLC (ANTO.LN) jumped 7.9% and
Rio Tinto PLC (RIO.LN) ended 4% higher.
Major oil companies also helped drive gains for European
indexes, as crude prices rallied. BP PLC (BP.LN) gained 2.3%, Royal
Dutch Shell PLC (RDSA.LN) closed up 1.9% and Total SA (TOT) rose
1.3%.
(END) Dow Jones Newswires
December 03, 2018 13:51 ET (18:51 GMT)
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