European shares are higher Friday, as investor sentiment gained a boost from news that US-China trade relations could be thawing. The two countries are set to have further talks later this month and US President Trump tweeted that he’d had a “very good conversation” with China’s President.
By 1250 BST, the EUROSTOXX 600 was 0.97% in the green, while the EUROSTOXX 50 was up 1.20%. Regional bourses were also upbeat. The German DAX rose 1.49%, the French CAC climbed 1.25% and the Spanish IBEX was 0.97% higher.
Sentiment climbs on US-China trade comments
Following a tough few months in which the US and China have moved further apart over their views of the trade relationship between the two countries, Trump suggested Thursday, that things could be improving.
New York and Beijing are set to meet later this month to discuss the ongoing trade issue. And, ahead of that meeting Trump and China’s President Xi Jinping spoke on the phone.
“Just had a long and very good conversation with President Xi Jinping of China. We talked about many subjects, with a heavy emphasis on Trade. Those discussions are moving along nicely,” Trump tweeted.
And, it appears the positive tone relating to the US-China trade tensions were strong enough to withstand news that the final manufacturing eurozone purchasing managers index fell to a 26-month low of 52.0 in October amid the first drop in new orders, in almost four years.
The final reading was even lower than the preliminary drop to 52.1.
HIS Markit said that the index showed: “concerns about the Eurozone manufacturing sector intensified at the start of the fourth quarter.”
While investors appeared buoyant over the trade-related developments, there were some stock movers of note.
Volkswagen shares were 3.80% higher at €157.30, as the German car manufacturer who is also a major vehicle exporter was buoyed by the US-China trade was developments.
However, chip maker AMS AG shares slid 2.56% to CHF41.45 following the iPhone unit sales miss reported by Apple. Investors were also disappointed at the tech firm’s outlook for holiday sales – the $91 million midpoint was below analysts’ forecasts for guidance of $93 million.