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UPDATE 2-European shares touch all-time peak on cross-Atlantic trade optimism

Published 01/18/2020, 01:40 AM
Updated 01/18/2020, 01:40 AM
UPDATE 2-European shares touch all-time peak on cross-Atlantic trade optimism

* Trade-sensitive miners lead gains
* Positive EU-U.S. talks add to optimism after China trade
deal
* Bayer up as company could be close to Roundup settlement
* CD Projekt biggest loser on STOXX 600 after game delay

(Updates to close, adds comments)
By Ambar Warrick
Jan 17 (Reuters) - European shares clocked a record closing
high on Friday after EU Trade Commissioner Phil Hogan struck a
positive tone on talks with Washington and on optimism over
signs of resilience in China's economy.
The pan-European STOXX 600 index .STOXX rose as much as 1%
to a record high of 424.90, marking its best week since Dec. 20.
Hogan said on Thursday he had a good exchange of views with
U.S. Trade Representative Robert Lighthizer in Washington,
underscoring Brussels' desire to negotiate solutions for several
open trade disputes between the United States and the EU.
The meeting is a step forward in addressing long-standing
issues such as a French digital tax and aircraft subsidies.
It also added to investor optimism after the United States
and China signed an interim trade deal earlier in the week.
"The positive comments surrounding one of the United States'
other trade conflicts - with the EU - it just adds to the
overall feeling of relief," said Connor Campbell, analyst at
British financial spread better Spreadex.
Signs of improvement in the Chinese economy following an
in-line GDP figure and strong industrial production data also
aided risk appetite, with demand in the world's second-largest
economy looking to pick up in 2020.
"In recent months the Chinese authorities have been
introducing measures to spur on economic activity, such as
loosening lending restrictions, and the tactics appear to be
working," said David Madden, a market analyst at CMC Markets UK
in London.
The trade-sensitive miners subindex .SXPP rose 2%, marking
its best day since early December with BHP Group BHPB.L , the
world's largest miner and a major Chinese supplier, adding 2.3%.
Stocks in Germany .GDAXI , the EU's largest economy, rose
0.7%, with technology stocks serving as the biggest boost.
Germany, which has a largely export-reliant economy, stands to
gain substantially from easing trade tensions. Pharmaceuticals maker Bayer AG BAYGn.DE rose 0.7% after a
mediator said the company was close to settling more than 75,000
claims related to its Roundup herbicide. France's EDF EDF.PA jumped 9.8% to the top of STOXX 600
after the government planned to introduce a "price corridor" for
the wholesale nuclear power market that will help the
state-controlled utility cover its costs while shielding
consumers from price spikes. Polish videogame developer CD Projekt CDR.WA was the
biggest loser on the STOXX 600, dropping 5.6% after it postponed
the release of its widely awaited game Cyberpunk 2077.

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