EUROPE MARKETS: Europe's Markets Rally Ahead Of Latest Round Of U.S., China Trade Talks
February 11 2019 - 07:08AM
Dow Jones News
By Emily Horton
European markets were up on Monday, as investors grew optimistic
ahead of the start of the latest round of trade talks between the
U.S. and China set to start in Beijing.
A number of Europe's major banks climbed, while oil majors also
rose.
How are markets performing?
The Stoxx Europe 600 added 0.6%, after finishing the previous
week down 0.5%.
Italy's FTSE MIB was the regions top climber, adding 1.5% to
19,648.13, while France's CAC 40 rose 0.8% to 5,000.43, Germany's
DAX 30 added 0.7% to 10,983.80 and the FTSE 100 gained 0.4% to
7,098.14.
The pound pared earlier losses, which helped boost the FTSE 100,
fetching $1.2930 from $1.2942 late on Friday in New York. The euro
fell to $1.1321 from $1.1326.
Opinion:Europeans must get rid of the failing EU one way or
another: The polite Brexit way, or the rowdy yellow-vest way
(http://www.marketwatch.com/story/europeans-must-get-rid-of-the-failing-eu-one-way-or-another-the-polite-brexit-way-or-the-rowdy-yellow-vest-way-2019-02-11)
What's driving the markets?
Investors were looking ahead to the restart of trade talks
between China and the U.S. on Monday. Treasury Secretary Steven
Mnuchin and trade representative Robert Lighthizer will represent
the administration of President Donald Trump without the president,
after Trump made it clear he will not be meeting with President Xi
Jinping before the trade deal deadline of March 1.
Brexit talks between the U.K. and Brussels will also begin again
on Monday. However, investors are nervous given the increasing
likelihood of a disorderly exit from the EU and little room for
negotiations over the previously agreed draft withdrawal treaty.
Prime Minister Theresa May has reached out to the leader of the
opposition Jeremy Corbyn
(http://www.marketwatch.com/story/brexit-brief-prime-minister-may-wants-opposition-talks-as-soon-as-possible-2019-02-11)
in an attempt to appease the parliamentary deadlock.
To add to this, official data
(http://www.marketwatch.com/story/uk-economy-slows-in-2018-dogged-by-brexit-fears-2019-02-11)
revealed Brexit anxiety has hampered the U.K.'s economic growth in
2018, the slowest in six yeas -- according to data from the Office
of National Statistics.
What shares were active?
A number of Europe's major banks rose Monday. Banco BPM SpA
(BAMI.MI) added 7%, after Italy's fourth largest bank reportedly
(https://uk.reuters.com/article/eurozone-banks-banco-bpm/ecb-set-total-srep-capital-requirement-at-1025-pct-for-2019-banco-bpm-idUKS8N1ZG04K)
said the European Central Bank has requested the bank adheres to
new capital requirements. HSBC Holdings PLC (HSBA.LN) added 0.9%
and Banco Santander SA. (SAN.MC) rose by 0.8%.
Meanwhile, Royal Bank of Scotland Group PLC (RBS.LN) lost almost
2%. The bank is expected to report results Friday.
Travel company TUI AG reclaimed some lost ground on Monday after
last week's tumble, adding 3%.
Smith & Nephew PLC (SN.LN) dropped by over 5%, after
(https://www.ft.com/content/3b5caa08-2be0-11e9-88a4-c32129756dd8)the
Financial Times reported
(https://www.ft.com/content/3b5caa08-2be0-11e9-88a4-c32129756dd8)
the company was in talks to buy NuVasive Inc. , a maker of medical
instruments used in spinal surgery. NuVasive shares climbed 14% in
premarket trading in the U.S. on Monday.
(END) Dow Jones Newswires
February 11, 2019 06:53 ET (11:53 GMT)
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