European shares climb on renewed trade optimism
European shares traded higher Monday as renewed optimism over U.S.-China trade talks looked set to reignite a risk-on approach from investors.
The pan-European Stoxx 600 climbed 0.5 percent in early trade, with autos jumping 2.2 percent to lead gains while the food and beverage sector slid 0.5 percent.
Hopes for progress in ongoing trade talks between the world’s two largest economies were boosted Sunday when U.S. Commerce Secretary Wilbur Ross said that licenses would be granted “very shortly” for American firms to sell to Chinese telecommunications giant Huawei.
Huawei was among a list of Chinese firms blacklisted by the Commerce Department over alleged national security threats. Ross also offered more detail on a prospective partial deal expected to be signed by President Donald Trump and Chinese President Xi Jinping.
Shares in Asia Pacific advanced on Monday afternoon in response to the news, led by Hong Kong’s Hang Seng index which climbed 1.28 percent.
Back in Europe, October manufacturing data out of Spain, Italy, France, Germany, and the euro zone as a whole is due for publication Monday morning.
Earnings in focus
Earnings continues to serve as the focal point for individual stock performance. Siemens Healthineers stock climbed 5 percent to lead the Stoxx 600, having earlier hit an all-time high after the German medical technology group reported strong fourth-quarter earnings.
At the other end of the European blue chip index, Vopak shares slid 3.4 percent after the Dutch storage company said it would focus on chemicals after a slowdown in its oil terminal business.
Source: CNBC
