European shares rise as trade war resolution hopes lift sentiment

LONDON: European shares opened higher on Monday as optimism over a deal to end the U.S.-Sino trade war lifted sentiment and a risk-on mood spread from Asia to European bourses in an otherwise slow day in terms of corporate earnings or economic indicators.

The pan-regional STOXX 600 index was up 0.4 percent by 0916 GMT, hovering around levels not seen since the beginning of October.

The Wall Street Journal reported on Sunday that Washington could lift most or all of its tariffs on Beijing, while a summit between U.S. President Donald Trump and his Chinese counterpart Xi Jinping to sign a final trade deal could happen later this month.

"Sentiment has improved overnight on the positive trade headlines with China's bourses leading the advance", commented Deutsche Bank strategist Jim Reid.

There were however strong losses, such as Britain's Rotork  which posted the worst performance, losing 7.4 percent after disappointing earnings.

A surprise big loser was lender Nordea which fell 5.7 pct, with traders citing a Finnish TV program reporting allegations of money laundering to be aired later on Monday.

Contacted by Reuters, Nordea declined to comment.

Fashion retailer Ted Baker fell after it announced that its Chief Executive Officer Ray Kelvin had resigned with immediate effect following an investigation into allegations of misconduct. Shares gradually recouped losses, however, to stand 0.9 percent higher.

The chemical sector was the only one trading in negative territory, weighed down by Victrex, downgraded by Citigroup and Linde for which JP Morgan cut its target price.

Swiss utility Alpiq shed 1.7 percent after reporting its fourth annual loss in five years as its hydropower and nuclear facilities again struggled.

Among top gainers were the shares of publisher Daily Mail & General Trust, which jumped 5.4 percent after announcing plans to return all of its shares in Euromoney Institutional Investor and 200 million pounds ($265 million) cash to eligible shareholders.

French perfumes maker Interparfums rose 4.4 percent after raising its full-year revenue guidance following a strong start to the year.