Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UPDATE 2-China tariff delays pull European shares out of doldrums

Stock Markets Aug 14, 2019 00:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
UPDATE 2-China tariff delays pull European shares out of doldrums

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Washington delays 10% tariffs beyond September
* Italian shares rebound as banks rise
* Henkel cuts outlook, shares slump

(Recasts throughout, updates to close)
By Susan Mathew and Shreyashi Sanyal
Aug 13 (Reuters) - European shares staged a comeback from
early losses on Tuesday as growth sectors led the charge, after
Washington's move to delay tariffs on some Chinese goods
provided a lift to battered global sentiment.
The U.S. administration will delay imposing a 10% tariff on
certain Chinese products, including laptops and cell phones,
beyond September, the Office of the U.S. Trade Representative
said on Tuesday. A separate list also included some imports that
would be exempted altogether from tariffs. That supported a move back to riskier assets after a
cocktail of negative drivers had pressured markets for the past
few sessions.
Commodity stocks .SXPP , automakers .SXAP and tech
sectors .SX8P were among the biggest gainers in Europe, and
helped the pan-European STOXX 600 index close up 0.5%, erasing
session losses of up to about 0.8%.
"What we are seeing now with this announcement is a clear
positive development," said Ken Odeluga, market analyst at City
Index. "This definitely counts as a relief to markets because...
this announcement shows the willingness to compromise from both
sides."
But Odeluga doubts the longevity of Tuesday's rally given
recent volatility in markets spurred by recession fears,
worsening Hong Kong tensions and a crash in Argentine markets.
Export-reliant Germany's DAX .GDAXI rose 0.6% on the U.S.
news, recovering after data showed plunging economic sentiment
among German investors. Investors will be closely watching
Wednesday's second-quarter economic growth data to see if
Europe's biggest economy is headed for recession. The easing in trade tensions also lifted oil prices which
saw energy stocks being among the top gainers on STOXX 600.
O/R
Italian shares .FTMIB , troubled by political turmoil, rose
more than 1% as banks .FTIT8300 rose with Monte Dei Paschi
BMPS.MI up 7.2%.
Right-wing League leader Matteo Salvini's drive for early
elections in Italy hit a road bump on Monday with parliamentary
party leaders failing to decide when the Senate should debate
his no-confidence motion in the government. "I think we're going towards a technical government... that
brings Italy to elections in an orderly fashion, securing public
finances, which can help reduce the damage," said Carlo
Franchini, head of institutional clients at Banca Ifigest.
In corporate news Henkel HNKG_p.DE shares slid to the
bottom of the pan-region index after the German consumer goods
company lowered its full-year outlook for sales and earnings.

UPDATE 2-China tariff delays pull European shares out of doldrums
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with 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
  • 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.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

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.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email