Please try another search
By Amy Caren Daniel and Sruthi Shankar
(Reuters) - European shares rose after a weak open on Thursday, boosted by a rally in Italian shares, with positive comments from China on its trade talks with the United States helping sentiment.
China's Commerce Ministry said both sides "should create conditions" for progress in negotiations and that China was against escalating the trade war and was willing to resolve the issue calmly.
"There seems to be some easing of trade worries that is giving a bit of boost to risky assets and stocks in particular," said Simona Gambarini, markets economist at Capital Economics in London.
The gains in markets were largely broad-based and the benchmark index (STOXX), which was flat in early trading, rose 0.61% by 0755 GMT.
Italian stocks (FTMIB) rose 1.33% to hit its highest level since Aug. 2 as President Sergio Mattarella is expected to give two former political enemies, the 5-Star Movement and Democratic Party (PD), a chance to form a new government on Thursday.
"The news is being welcomed because it's certainly a better option than a League-led government," said Gambarini.
"That said, the 5-star Movement and PD notoriously have not had much in common in the past and it remains to be seen whether the coalition will last."
However, worries lingered in the markets.
The benchmark European index is on track to end August about 3% lower as an inversion in the U.S. Treasury yield curve showed investors were concerned about economic growth in the face of a trade war that is now in its second year.
Fears of a disorderly Brexit weighed on Britain's mid-cap index (FTMC), which slid for a second day in a row, after Prime Minister Boris Johnson decided to suspend Britain's parliament for more than a month before Brexit.
Johnson's move also increases the chance of him facing a vote of no-confidence in his government, and possibly an election.
British IT group Micro Focus (L:MCRO) slumped 29.8% to trade at the bottom of the STOXX 600 after it warned on profit, citing lower spending by clients.
Bouygues (PA:BOUY) rose 4.9% after the French conglomerate reported a better-than-expected first-half core operating profit.
Investing.com – France stocks were lower after the close on Wednesday, as losses in the Consumer Goods, Technology and Industrials sectors led shares lower. At the close in Paris,...
By Sam Boughedda Investing.com -- Shoe Carnival Inc (NASDAQ:SCVL) reported its first-quarter earnings on Wednesday, which saw profit surpass pre-pandemic levels. However, its...
By Amruta Khandekar and Devik Jain (Reuters) -The Nasdaq and the S&P 500 dropped 3% on Wednesday as a rally in growth shares faded amid economic growth concerns, while Target...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.