Drug stocks help drive gains
European markets rose n Tuesday, as optimism over reignited trade talks between the U.S. and China spurred investors to pick up perceived riskier assets such as stocks.
How are markets trading?
The Stoxx Europe 600 SXXP, +0.87% gained 1.5% to 347.94, after finishing down 0.15% on Monday.
The French CAC 40 PX1, +1.15% rose 1.9% to 4,807.99, while Italy’s FTSE MIB index I945, +0.25% gained around 1.1% to 19,171.16. While the U.K.’s FTSE 100 UKX, +0.74% jumped 1.2% to 6,894.17 and Germany’s DAX 30 DAX, +0.52% added 1.5% to 10,905.26.
The euro EURUSD, +0.1835% fell to $1.1432 EURUSD, +0.1835% from $1.1476 late in New York on Tuesday. The pound GBPUSD, +0.1887% eased to $1.2737 from $1.2779.
What is driving the markets?
A second day of trade talks between the U.S. and China and optimism around those discussions drove global equities higher, with Wall Street kicking off its third-straight session of gains.
Investors were able to shake off other worries such more signs of stress in the tech sector. South Korean tech giant Samsung Electronics Co. 005930, +3.54% warned of a 29% fall in fourth-quarter operating profit, citing “mounting macro uncertainties” and “lackluster demand.” That caution comes a week after Apple Inc.’s AAPL, +1.91% shock warning over sales.
Weak European data was also brushed aside. German industrial production data revealed a surprise slump in November, adding to recent evidence that a nine-year recovery in Europe’s largest economy is foundering.
In the U.K., British and European officials are reportedly discussing the possibility of delaying Brexit, amid ongoing opposition from U.K. politicians over an exit deal secured by Prime Minister Theresa May last year.
What stocks are active?
Denmark’s Bang & Olufsen A/S BO, +15.88% soared 13% on Tuesday, after posting strong growth projections.
Pharmaceutical names were also higher, with Novartis AG NOVN, +1.90% NVS, +2.17% climbing 1.8% and Sanofi SA SAN, +0.79% SNY, +1.30% up 1.2%.
Among retailers, Next PLC NXT, +5.25% jumped 6%. Supermarkets were in focus after consultancy Kantar reproted record holiday sales for the group, with Tesco PLC TSCO, +2.77% up 3%.
Wm. Morrison Supermarket PLC MRW, -3.21% dropped by 2.6% after its Christmas trading announcement was overshadowed by younger rival Aldi, which reported 10% growth in sales numbers on Monday.