European stocks extend gains as trade war fears ease
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LONDON: European stocks rose on Tuesday (May 22), with London hitting a new high on upbeat global sentiment and easing Italian political worries, dealers said.At the end of the session, London's FTSE 100 benchmark index was 0.2 per cent higher, Frankfurt added 0.7 per cent and Paris inched up 0.1 per cent.
On the other side of the Atlantic, Wall Street opened higher for a second straight day but soon fell back as investors took profit."FTSE is still trending upwards, supported by the easing of US-China trade tensions, as well as a weaker dollar supporting metals and mining stocks," said Accendo Markets analyst, Artjom Hatsaturjants.Milan stocks ended the session 0.5 per cent higher, as investors awaited fresh news on the formation of a new Italian government."The calming of tensions over Italy, or at least the lack of news, has allowed European equities to hold steady, but the situation will likely act to cap near-term bullish activity in eurozone stocks," analyst Chris Beauchamp at trading firm IG said.
World oil prices meanwhile pushed higher after Washington flagged harsh sanctions on key producers Iran and Venezuela.Stocks rose Monday after the United States and China effectively called a truce in what had been a spiraling trade dispute.US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He said they had agreed to pull back from the brink of a potentially damaging trade war.However, scepticism over the news crept across Asian trading floors on Tuesday.
Also tempering optimism are worries about higher US interest rates and geopolitical issues."Markets are going through a bumpy ride," Bank of Singapore Investment Strategist James Cheo told Bloomberg Television."This trade truce is still in the early days. It's really a ceasefire, it's not a peace treaty as yet. The implementation details are still unclear. There is still some caution among Asian investors."Key figures around 1550 GMT:New York - Dow: DOWN 0.1 per cent at 24,981.23 pointsLondon - FTSE 100: UP 0.2 per cent at 7,877.45 (close)Paris - CAC 40: UP 0.1 per cent at 5,640.10 (close)Frankfurt - DAX 30: UP 0.7 per cent at 13,169.92 (close)Milan - FTSE MIB: UP 0.5 per cent at 23,129.24 (close)EURO STOXX 50: UP 0.4 per cent at 3,587.25Tokyo - Nikkei 225: DOWN 0.2 per cent at 22.960.32 (close)Shanghai - Composite: FLAT at 3,214.35 (close)Hong Kong - Hang Seng: Closed for a public holidayEuro/dollar: DOWN at US$1.1784 from US$1.1792Pound/dollar: DOWN at US$1.3442 from US$1.3451Dollar/yen: FLAT at 110.96 yenOil - Brent North Sea: UP US$1.11 at US$80.33 per barrelOil - West Texas Intermediate: UP 44 cents at US$72.79 per barrel
Source : http://www.channelnewsasia.com/news/business/european-stocks-extend-gains-as-trade-war-fears-ease-10258558