EUROPE MARKETS: Europe Stocks Rally In Fourth Day Of Gains As U.S. Considers Chinese Tariff Cuts
January 18 2019 - 9:28AM
Dow Jones News
By Emily Horton
Stoxx 600 headed for nearly 2% gain for the week
European markets joined a global stock rally Friday, after a
report that the U.S. may reduce tariffs on Chinese imports raised
investor hopes that the two countries will resolve their
long-running trade debate.
An upbeat forecast from heavyweight miner Rio Tinto PLC drove
gains for the mining sector.
How are the markets trading?
All of Europe's major indexes were up Friday with the Stoxx
Europe 600 jumping 1.4% to 355.85, after making slight positive
increases on Thursday -- marking the forth consecutive day of gains
for the Stoxx 600 and a 1.9% gain for the week so far.
Leading the regional indexes higher, Germany's DAX 30 jumped
1.9% to 11,122.49, France's CAC 40 added 1.6% to 4,870.73, the FTSE
100 Index gained 1.6% to 6,946.31 and Italy's FTSE MIB rose 1.1% to
19,688.20.
The British pound was under pressure, dropping to $1.2938 from
$1.2986 late in New York on Thursday.
The euro rose to $1.1404 from $1.1392.
What's driving the markets?
U.S. officials are debating ratcheting back tariffs on Chinese
imports as a way to calm markets
(http://www.marketwatch.com/story/us-mulls-easing-tariffs-against-china-in-order-to-calm-markets-pave-way-for-deal-2019-01-17)
and give Beijing an incentive to make deeper concessions in a trade
battle that has rattled global economies.
(http://www.marketwatch.com/story/us-mulls-easing-tariffs-against-china-in-order-to-calm-markets-pave-way-for-deal-2019-01-17)According
to the report in The Wall Street Journal, Treasury Secretary Steven
Mnuchin is willing to roll back U.S. tariff hikes on Chinese goods,
but chief trade negotiator Robert Lighthizer was lukewarm over the
proposal. And a source said that no big decisions have yet big
taken.
In the U.K., lawmakers have come to a political deadlock over
the Plan B Brexit agreement, as Prime Minister Theresa and leader
of the opposition Jeremy Corbyn entered a gridlock over their
competing visions for Britain to leave the European Union on
Thursday, Reuters reported
(https://uk.reuters.com/article/uk-britain-eu/uk-in-deadlock-over-brexit-plan-b-as-may-and-corbyn-tussle-idUKKCN1PB0M6).
Brexit Brief:General election talk grows louder in Westminster
(http://www.marketwatch.com/story/brexit-brief-general-election-talk-grows-louder-in-westminster-2019-01-18)
What stocks are active?
Telecom Italia SpA (TIT.MI) led Europe's stock losers on Friday,
dropping 7% after it warned over 2018 earnings
(http://www.marketwatch.com/story/telecom-italia-warns-of-lower-2018-earnings-2019-01-18).
Ryanair Holdings PLC lost 1.2% after it lowered its full profit
guidance on Friday
(http://www.marketwatch.com/story/ryanair-cuts-2019-profit-view-on-low-winter-fares-2019-01-18),
citing lower winter fares for the reason behind the warning. This
news hit other airlines, with easyJet PLC (EZJ.LN) losing nearly
3%.
French car marker Renault SA (RNO.FR) gained 1%, after it
announced that vehicle sales in 2018 rose by more than 3%
(http://www.marketwatch.com/story/renault-2018-sales-up-on-china-brand-integration-2019-01-18),
driven partly by the integration of Chinese brands Jinbei and
Huasong.
Exclusive:Fast-fashion giant Primark has explored a major
e-commerce sales push
(http://www.marketwatch.com/story/exclusive-fast-fashion-giant-primark-has-explored-a-major-e-commerce-sales-push-2019-01-17)
Heavyweight miner Rio Tinto's (RIO.LN)rise in exports forecast
(http://www.marketwatch.com/story/rio-tinto-sees-further-rise-in-exports-this-year-2019-01-18),
led to a 0.9% increase in the company's stocks and pushed up other
European miners. Glencore PLC (GLEN.LN) jumped by 2.7%, but
Fresnillo PLC (FRES.LN) fell 1.3% as gold prices fell.
(END) Dow Jones Newswires
January 18, 2019 09:13 ET (14:13 GMT)
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