European shares are higher Thursday, following a positive outcome from key US-EU trade talks, Wednesday. Meanwhile, a number of European company earnings releases impressed investors, adding to the brighter tone.
Investors are also considering the ECB meeting and press conference, after chairman Mario Draghi kept rates unchanged as its bond buying programme remains set to end this year.
By 1255 BST, the EUROSTOXX 600 was 0.42% higher, while the EUROSTOXX 50 rose 0.62%. Regional bourses were equally positive. The German DAX gained 1.25%, the French CAC was 0.24% in the green and the Spanish IBEX was up 0.81%.
Upbeat trade talks outcome
After pausing for breath ahead of the talks between US President Trump and EU Commission chairman Jean-Claude Juncker Wednesday, investor sentiment is more positive Thursday after trade tensions eased.
Trump and Juncker agreed to create a team that would work together, towards zero trade tariffs between the two regions.
And, while an agreement from the EU to buy more soy beans and LNG from the US helped encourage Trump to shelve import tariffs on EU cars, the steel and metals tariffs remain in place.
“Great to be back on track with the European Union. This was a big day for free and fair trade!,” Trump tweeted.
As a result of that meeting outcome, car shares helped drive indices higher:
- Daimler shares rose 2.40% to €59.27.
- BMW shares gained 3.03% to trade at €82.28.
- Fiat shares moved 4.86% higher to hit €14.67.
Other stock movers
Aside from upbeat car stocks, a number of earnings results also worked to move individual shares.
French hygiene services firm Elis shares surged 12.68% to €20.26 after announcing the purchase of Irish based King Laundry.
Also moving higher were Airbus shares; the European plane maker reported Q2 profits that were almost double those from a year earlier. Airbus shares gained 4.69% to trade at €109.82.
Meanwhile, Nokia shares moved in the opposite direction after reporting weak quarterly earnings results. The Nokia stock price slid 6.26% to hit €4.75.