Europe up after Beijing statements on trade

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EUROPEAN SCHOLARSHIPS INCREASE

by Juliette Rouillon

PARIS (Reuters) – The main European stock markets moved higher in the morning Thursday after a negative opening, supported by good news on Bouygues and Pernod, and statements of goodwill from the Chinese Ministry of Commerce on the negotiations with the United States. United.

The Chinese Commerce Ministry said Beijing and Washington are currently discussing a possible resumption of their bilateral trade talks, adding that China, opposed to escalating trade war, is willing to resolve the problem calmly.

These statements favored a reversal in European equities, but government bond yields remain close to record lows in the fear of a global recession due to trade tensions and a Brexit without agreement.

In Paris, the CAC 40 index gained 1.13% at 5,429.66 points around 08:55 GMT. In Frankfurt, the Dax takes 0.9% and in London, the FTSE advances by 0.86%. The Milan Stock Exchange (+ 1.5%) outperformed in view of the formation of a new coalition government.

The EuroStoxx 50 index in the euro zone rose by 1%, the FTSEurofirst 300 by 0.85% and the Stoxx 600 by 0.79%.

Investors continue to worry about the reversal of the entire US yield curve, a sign historically considered to be the beginning of the US economy's entry into recession, a factor favors safe havens like the yen and gold.

In Italy, President Sergio Mattarella instructed Giuseppe Conte, who had resigned, to form a new coalition government between the 5-Star Movement (M5S) and the Democratic Party (PD), which should help prevent early elections in New York. fall and reduce fiscal and economic uncertainties.

The market is waiting for the German inflation figures (12.00 GMT).

VALUES

Bouygues climbed 5.95% after publishing results above expectations in the first half, thanks in particular to telecoms.

Pernod Ricard (+ 3.1%), for its part, saw the growth of its profits accelerate for its annual offbeat year thanks to the jump of its sales in China, and multiplied the initiatives with the announcement of the creation of a distillery in China, continued acquisitions in US whiskey and a share buyback plan of up to one billion euros.

IN ASIA

The Tokyo Stock Exchange ended down 0.09%, gains early trading in the wake of Wall Street not held, especially because of the appreciation of the yen weighed on the export values.

In China, the SSE Composite Shanghai index fell 0.1%.

A WALL STREET

The NYSE ended sharply higher on Wednesday, driven by financial and oil stocks, a rebound that has put at risk, for at least momentarily, fears of recession and trade tensions.

The Dow Jones index, which was in the red at the opening, quickly returned to positive territory and in closing, it gained 258.2 points, or 1%, to 26,036.1. The broader Standard & Poor's 400 took 18.78 points, or 0.65%, at 2,887.94 and the Nasdaq Composite rose 29.94 points, or 0.38%, to 7,856.88.

RATE

Most sovereign bond yields are up slightly, but the 10-year Bund and 30-year Treasuries both remain near record lows on Wednesday at -0.716% and 1.905% respectively.

Italian 10-year yields continued to fall after falling below 1% for the first time in its history. The rush to Italian bonds, whose returns remain higher than elsewhere in the euro area, is pending the formation of a new government.

EXCHANGE

Risk aversion is supporting the yen, which is set to post its biggest monthly gain since May, while weak 30-year Treasuries are slowing the dollar.

The yuan fell again slightly, down for the 11th consecutive session, in the context of intensification of the trade war.

OIL

Oil prices are falling for the first time in three days after mixed statements on the outlook for the US economy by San Francisco Federal Reserve President Mary Daly.

The October contract on US light crude (West Texas Intermediate, WTI) lost 0.34% to 55.59 dollars per barrel and Brent fell 0.28% to 60.32 dollars.

(Edited by Marc Angrand)



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