European shares are mixed in the early Monday afternoon, as easing trade war tensions between the US and China provide some support, while uncertainty over the Italian political situation continues to weigh on sentiment and dog the Italian MIB.
By 1305 BST, the EUROSTOXX 600 was 0.24% higher, while the EUROSTOXX 50 lost 0.46%. The French CAC was up 0.50%, the Spanish IBEX was down 0.09% and the Italian MIB sank 0.77%. The German DAX was shut for Whit Monday.
Trade war fears ease
The US and China have each agreed to suspend potential trade tariffs as they opt to discuss the broader trade relationship and framework between the two major economies. Those further discussion include details on reducing the trade deficit between the US and China.
“We are putting the trade war on hold,” Treasury Secretary Steven Mnuchin said Sunday. “Right now, we have agreed to put the tariffs on hold while we try to execute the framework,” Mnuchin said on Fox television.
The development comes as the two countries announced a series of trade tariffs each would impose on the other. That news earlier this year raised the spectre of a possible global trade war, which has the potential to wreak lasting damage on stocks and economies.
Discussion are set to include how China could increase its imports of US energy and agricultural commodities.
While trade war fears have eased, investors remain uncertain as to exactly how the next Italian Government will look and what it will mean for business and the economy.
That is helping to keep Italians tocks broadly lower, Monday, as evidenced by the lower MIB index. Eni shares are down 0.30%, while Intesa Sanpaolo shares have lost 6.35%.
Elsewhere, Ryanair shares are higher after the budget airline reported a 1-0% gain in post-take profits and passenger growth of 9%. However, Michael O’Leary remains cautious about the 2018-19 full year amid rising costs.