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European shares rise on trade-fuelled optimism

Published: September 27, 2019 14:35:12 | Updated: October 11, 2019 11:43:31


File Photo (Collected)

European shares rose on Friday while hopes of a quick resolution to the US-China trade war offset worries of slowing economic growth and rising political risks.

The pan-European STOXX 600 index rose 0.5 per cent, with export-heavy London's FTSE 100 .FTSE up almost 1.0 per cent, led by gains in oil majors and miners.

The United States and China are prepping for another round of high-level trade talks scheduled for Oct. 10 and 11 in Washington, aimed at resolving their near 15-month long trade dispute, reports Reuters.

The European basic resources sector .SXPP jumped 1.4 per cent, powered by a rise in shares of Norwegian aluminum company Norsk Hydro (NHY.OL), which gained 1.9 per cent, after a Brazilian court lifted its final production embargo on the company’s key plant.

However, shares of semiconductor companies Infineon (IFXGn.DE), AMS (AMS.S) and ASM International (ASMI.AS) came under pressure after a profit warning from US chipmaker Micron Technology Inc (MU.O).

Tech stocks .SX8P edged 0.1 per cent higher, posting some of the smallest gains among the major European sub-sectors.

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