Equities Indices

European shares mainly higher amid mixed geopolitical backdrop

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European shares are trading broadly in the green Friday as investors are buoyed by North Korea’s response to US Trump’s cancellation of talks. Some support has also come as the US President is widely criticised for steps towards the possible introduction of new auto import tariffs.

Ongoing concerns over the new Italian coalition government’s plans are weighing in the Italian index, however, with the country’s banks losing ground. And, Spanish stocks moved lower amid a vote of ‘no confidence’ for PM Rajoy.

By 1345 BST, the EUROSTOXX 600 was 0.15% higher, while the EUROSTOXX 50 moved 0.12% lower. Meanwhile, the DAX 30 was up 0.63% and the CAC 40 gained 0.13%. The Spanish IBEX and Italian MIB were both in the red, however, by 1.84% and 1.21%, respectively.

US President’s decision move markets

Of course, US President Trump’s comments, action and decisions always move markets. However, Friday has seen some interesting ones regarding his latest views and actions.

Trump’s decision to call off the talks between the US and north Korea due to ‘open hostility’ has helped introduce a few jitters into the market. However, North Korea has responded by saying it still open to talks with the US at any time.

That response from North Korea has helped calm some fears that arose following signs that the relationship between the two countries was taking a downward turn.

Also affecting the European markets, is the broadly negative response to Trump’s decision to approve an investigation into the effect of the foreign import of cars on the US’ own auto industry.

After losing ground Thursday, some European car maker stocks have moved higher. BMW shares edged up 0.02% to €87.52 and Volkswagen shares rose 1.03% to €169.12.  

Italian banks fall further

Italian bank stocks fell further Friday amid the ongoing political uncertainty there. While coalition talks have finally borne fruit, analysts and market watchers seem unsure of how successful the new Government’s plans will prove for the economy.

Banco BPM shares sank 6.06%, UBI shares slid 4.04% and UniCredit shares fell 2.82%.

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