European stock markets edge higher

In the eurozone, Frankfurt's DAX 30 gained 0.2 percent and the Paris CAC 40 won 0.3 percent, compared with Tuesday'
06 Nov, 2019
  • In the eurozone, Frankfurt's DAX 30 gained 0.2 percent and the Paris CAC 40 won 0.3 percent, compared with Tuesday's closing levels.
  • US is considering removing tariffs on more than $100 billion of Chinese imports to get a mini pact done had sent Asian stock markets surging on Tuesday.
  • "Some of the optimism over the trade deal that is being baked into oil prices might be a bit premature."

LONDON: European stock markets edged higher on Wednesday after a steady showing in Asia and another record-high close on Wall Street.

Around 1230 GMT, London's benchmark FTSE 100 index was up 0.1 percent.

In the eurozone, Frankfurt's DAX 30 gained 0.2 percent and the Paris CAC 40 won 0.3 percent, compared with Tuesday's closing levels.

"Markets are back in consolidation mode on Wednesday, as traders take a breather in what is turning out to be a much more relaxed week than those just gone," noted Craig Erlam, senior market analyst at Oanda trading group.

"We are still seeing plenty of trade war headlines with China, it seems, looking to capitalise on (US President Donald) Trump's desire to secure a phase-one agreement by demanding the removal of more tariffs," he added.

Reports that the US is considering removing tariffs on more than $100 billion of Chinese imports to get a mini pact done had sent Asian stock markets surging on Tuesday.

US stock market gains on Tuesday came after data showed a better-than-forecast increase in activity in the key US services sector last month, which added to signs the world's top economy was stabilising.

Signs of trade talk progress also helped support the Chinese yuan, which was hovering slightly above seven to the dollar, having broken below that level on Tuesday for the first time since May.

However, Stephen Innes at AxiTrader said investors could be reaching their limit for more gains until there is more movement on the trade talks.

"Sentiment is extremely optimistic and it could be that we are nearing the peak of the sentiment wave, and a phase one Sino-US deal is fully priced," he said.

Elsewhere, oil prices -- which reached six-week highs Tuesday on trade and economic hopes -- slipped back Wednesday as investors fretted over weak demand owing to data that indicated a jump in US stockpiles.

Vandana Hari, founder of Vanda Insights, raised a flag over the possible impact on crude if the trade deal does not materialise.

"Some of the optimism over the trade deal that is being baked into oil prices might be a bit premature," she remarked to Bloomberg TV.

Key figures around 1230 GMT

London - FTSE 100: UP 0.1 percent at 7,391.84 points

Frankfurt - DAX 30: UP 0.2 percent at 13,175.26

Paris - CAC 40: UP 0.3 percent at 5,865.13

EURO STOXX 50: UP 0.3 percent at 3,687.28

Tokyo - Nikkei 225: UP 0.2 percent at 23,303.82 (close)

Hong Kong - Hang Seng: FLAT at 27,688.64 (close)

Shanghai - Composite: DOWN 0.4 percent at 2,978.60 (close)

New York - Dow: UP 0.1 percent at 27,492.63 (close)

Euro/dollar: UP at $1.1082 from $1.1075 at 2100 GMT

Dollar/yen: DOWN at 109.02 yen from 109.16 yen

Pound/dollar: DOWN at $1.2881 from $1.2884

Euro/pound: UP at 86.02 pence from 85.96 pence

Brent North Sea crude: DOWN 0.5 percent at $62.62 per barrel

West Texas Intermediate: DOWN 0.2 percent at $57.11 per barrel

 

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