On Tuesday investors applauded positive signals surrounding the US-China trade talks, boosting European shares. While tire maker Michelin reported better-than-expected results helping the rally in European shares.
The pan-European STOXX gained 0.6 percent.
Germany DAX rose 1.1 percent.
Paris CAC 40 gained 0.8 percent.
In spite of challenging conditions, Michelin tire maker reported better than expected results, shares rallied over 10 percent in the best day for nearly a decade. The French tire maker is optimistic that for this year there will be further gains in operating profit.
Boosting the STOXX 600 automakers and suppliers in their domestic markets helped the rally and were the biggest gainers. With Germany’s Continental and Italy’s Pirelli amongst the top gainers.
Indices in London underperformed their peers in the euro-zone ahead of British Prime Minister Theresa May’s address to parliament, in her continued effort to gain support for her Brexit deal.
Credit Suisse said they are taking a neutral stance on global equities, citing headwinds that so far this year are threatening a rally in global equities. They said that there are mounting short term risks, but overall expect attractive total returns for this year on global equities.
Uncertainty, between the U.S. and the Beijing trade deal, could result in volatility and European Stocks could be weighed by political tensions in France, Germany, Italy with uncertainties on the outcome of Brexit.
Gucci shares fell 3.3 percent, failing to impress investors after posting better than expected results, but by mid-morning turned positive after luxury brand earnings forecast an upbeat Q1 outlook.
Germany steel-to-elevator maker ThyssenKrupp had warnings of a darkening global environment on the horizon and following a drop in their first-quarter results saw their shares fall2 percent.
That’s not all …
Plus500, the leading global CFD/Forex online trading broker is also issuing a warning regarding its profit and revenues after the company lost a third of its value. It cited the tightening of EU regulation as the cause. Release of the news also dragged down IG.
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