Europe markets higher on U.S.-China trade hopes


European markets increased as optimism grew regarding U.S.-China trade talks at the coming G-20 summit.

How did markets perform?

The Stoxx 600

SXXP, +0.03%

 was up 0.2% to 384.2 after edging down 0.1% Tuesday.

The U.K.’s FTSE 100

UKX, +0.13%

 was flat at 7,421.3. On Tuesday it ticked up by 0.1%.

The pound

GBPUSD, -0.0788%

 gained 0.1% to $1.2703 after closing on Tuesday down 0.3%.

In Germany, the DAX

DAX, +0.48%

 swelled by 0.6% to 12,310.8. It slumped 0.4% Tuesday.

France’s CAC 40

PX1, +0.17%

 increased 0.3% to 5,528.5. It moved down 0.1% Tuesday.

Italy’s FTSE MIB

I945, +0.10%

 moved up 0.5% to 21,232.8, after falling 0.7% Tuesday.

What’s moving the markets?

U.S. Treasury Secretary Steven Mnuchin told CNBC that a trade deal with China was “90% of the way there” when talks broke off. Speaking in Bahrain, Mnuchin said he expected U.S. President Donald Trump and Chinese President Xi Jinping would make progress on a deal at the G-20 summit in Japan later this week. According to a Reuters report, however, the U.S. side is not going into talks with the intention of bringing concessions, and the Chinese side has publicly said both sides should make compromises.

U.S. Federal Reserve chairman Jerome Powell gave a speech Tuesday indicating that the central bank had not yet decided to cut interest rates, dampening investors’ enthusiasm over a potential loosening of policy. “The question my colleagues and I are grappling with is whether these uncertainties will continue to weigh on the outlook and thus call for additional policy accommodation,” Powell said.

Former U.K. foreign secretary Boris Johnson said potential European Union tariffs that could emerge in a no-deal Brexit scenario would be “bizarre” and “a return to Napoleon’s continental system”. The leading candidate for head of the Conservative Party and by extension, Prime Minister, said in a radio interview that while he was not seeking a no-deal Brexit, the U.K. needed to be prepared for such an outcome in order for the EU to understand how serious the U.K. side is.

In economic data, Germany’s forward-looking GfK consumer confidence survey for July came in at 9.8, below the consensus expectation of 10 and the lowest figure since 2017. By contrast, in France, consumer confidence for June was 101 versus a consensus of 100.

Which stocks are active?

Schneider Electric SE

SU, +1.26%

 confirmed its full-year 2019 targets at its capital markets day. The electrical products making company said it was aiming to expand productivity, measured by its adjusted Ebitda margin, which it said it would improve by 200 basis points at constant exchange rates. Shares in the French company climbed 1.2%.

John Wood Group PLC

WG, +6.34%

 said performance for the half-year was up in year over year terms, and confirmed its guidance for the full year. The oil services company said it expected revenue to grow in the second half of the year in addition to seeing $60 million in cost synergies. Shares were up 5.5%

Ryanair Holdings PLC

RYA, +0.48%

 announced it was changing its share buyback scheme so that the budget airline company could purchase shares privately from investors in events such as a no-deal Brexit. Its shares rose 0.6%.

Source : MTV