European shares are trading higher again Wednesday, as sentiment is supported by positive political developments.
Investors largely shrugged off North Korea Missile news. Instead, they preferred the optimism over the US tax reform bill. And, news the UK likely agreed to pay a higher settlement fee in the EU divorce talks, also buoyed sentiment.
By 1300 BST, both the EUROSTOXX 600 and EUROSTOXX 50 were trading 0.69% higher. The regional bourses were also upbeat. The German DAX was 0.8% in the green, the French CAC was up 0.58% and the Spanish IBEX was 1.17% higher.
US tax reform bill
Signs of progress on upcoming US tax reforms was taken well by investors. News that two conservatives who hadn’t been 100% on board, Tuesday voted to send the bill to the senate for a vote, was considered a good step for the Republicans.
The reforms, which will largely benefit high earners, won’t be finalised until further debate and votes have taken place. However, President Trump appeared to support some concessions on the current Bill, to help encourage some of the more reluctant members of the senate.
“I think it’s going to pass and it’s going to be very popular,” Trump told reports Tuesday.
“It’s going to have lots of adjustments before it ends. But the end result will be a massive – the largest in the history of our country – tax cut,” he added.
Against that backdrop, shares that made gains Wednesday included:
- Deutsche Bank shares rose 1.3% as it said it would take another two-to-three years to fully implement the ongoing investment bank restructure.
- Spanish bank BBVA shares were 2.3% in the green on news it had a reached a deal with Cerberus on its real-estate business.
- And, Air France-KLM shares were 1.9% higher on a cooperation deal between the Franco-Dutch airline and India’s Jet Airways.