European shares rise despite caution ahead of US-China trade talks

European shares are higher despite investor caution ahead of the US-China trade talks, Wednesday.

European shares rise despite caution ahead of US-China trade talks

European shares are higher around midday Tuesday, despite some investor caution ahead of Wednesday’s talks between the US and China. Investors are also biding their time ahead of the Wednesday publication of minutes from the US Fed’s latest meeting.

By 1255 BST, the EUROSTOXX 600 was 0.43% higher, while the EUROSTOXX 50 had gained 0.77%. Meanwhile, the German DAX rose 0.67%, the French CAC was 0.76% in the green and the Spanish IBEX as up 1.05%.

Investor caution

While European stocks are broadly higher Tuesday, there is some investor caution ahead of the US-China trade talks tomorrow, which is dampening that positivity a little.

In an interview with Reuters news agency, US President Trump said he wasn’t feeling hopeful ahead of the talks with China. He told Reuters that he “didn’t expect much from Wednesday’s discussion.

Trump added that he expects a trade resolution between the two countries will “take time because China’s done too well for too long, and they’ve become spoiled. They dealt with people that, frankly, didn’t know what they were doing, to allow us to get into this position.”

In addition to trader caution on Trump’s comments and ahead of the talks, investors are also looking to the Wednesday release of the minutes of the latest US Fed monetary policy meeting. The details form the August meeting will be closely monitored for any indication of the future Fed interest rate plans.

Stock movers

Aside from that backdrop, there were few stock movers of note, Tuesday.

Saipem shares are 4.78% higher at €4.49 after the Italian energy contractor won new services contracts from ExxonMobil, worth around $700 million.

Other gainers included:

  • Nokia shares rising 0.72% to €4.64 after the telecoms equipment maker announced its licensing rate expectations for the 5G network upgrade.
  • Aggreko shares gained 4.58%to £880.80 after an upgrade from HSBC to ‘buy’.

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