European shares edge broadly higher amid trade talks hopes, mixed company news

European shares edge broadly higher amid trade talks hopes, mixed company news

European shares are mainly a little higher Monday, on hopes of an agreement between the US and China on trade. Mixed company news has worked to limit gains, as have ongoing concerns over Brexit and the UK’s Government.

By around 1325 BST, the EUROSTOXX 600 was up 0.26%, while the EUROSTOXX 50 had edged 0.32% higher. Regional bourses, meanwhile, were also mildly positive. The German DAX inched 0.13% into the green, the French CAC gained 0.20% and the Spanish IBEX rose 0.33%.

US-China trade deal hopes

Investor sentiment has gained a minor boost from news Friday, that the US and China could be willing to reach a deal over trade.

After receiving a new list of negotiations points ahead of the upcoming G20 summit, US President Trump said: ”I think a deal will be made.” … “We’ll find out very soon.”

However, Trump also said the list was not yet acceptable. Meanwhile, his aides warned reporters not to read too much into his comments. The President has said similar things previously, only to change his tune.

Stock movers

While the markets keep one eye on the ongoing US-China trade dispute, other news helped direct individual stocks, Monday.

Renault shares tanked over 10% after an investigation by Nissan discovered that Carlos Ghosn – who is Chairman of the Japanese carmaker as well as Chairman and CEO of Renault – has been under reporting his earnings to the Tokyo stock exchange for years. The Japanese firm uncovered evidence of additional financial misconduct, too.

VW shares, meanwhile, are in positive territory, following news Friday it plans to invest €44 billion in the electrification of its fleet. VW said it will mass-produce electric vehicles, which will help make the process more affordable, both for it and its customers.

Elsewhere, Telecom Italia shares are higher after the telecoms business appointed Luigi Gubitosi as its new CEO, following the unexpected removal of former chief, Amos Genish, last week.

By Ilona Billington
Ilona is a freelance writer and editor with over 15 years experience reporting and writing about UK and European economics, real estate, financial markets and central banks.

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