Reuters Insider - Shares rise as China reins in tariff move

Baader Bank AG

11/09/2019 15:46

Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_6iwkb8y8&referenceId=tag:reuters.com,2019:newsml_OVAW7Y8WB_930&pageId=ReutersNews
Source: Reuters Insider

Description: European shares rose to six-week highs on Wednesday, as China
eased trade worries. As David Pollard reports, corporate headlines and hopes
of ECB policy easing also drove the action.
Short Link: https://tmsnrt.rs/2NSngk9

Video Transcript:

China is to exempt some US goods from extra tariffs as Washington and Beijing
prepare for new talks. Markets took those headlines from the trade war front
as positives on Wednesday. Shares opened around 0.5% or more up as investors
saw signs of a thaw in relations. They were cool about Inditex though. The
Zara owner and world's biggest fashion retailer saw 2% trimmed from its
shares. Despite strong sales growth, its numbers revealed a
weaker-than-expected rise in profit margins. French supermarket group Casino
saw gains of 2% or more in early trade on speculation that Europe's biggest
retailer Carrefour is mulling a bid. Carrefour says no offer is on the table.
And shares in newcomer to Europe, Prosus, rocketed 25% after their debut in
Amsterdam. Prosus comprises South African e-commerce group Naspers' internet
assets including a 31% stake in Tencent of China. Also on the radar,
Thursday's ECB policy announcement. Analyst Robert Halver of Baader Bank.

Many including myself expect a rate cut this week. That would make it clear
that the ECB remains in the fast lane as far as monetary policy is concerned. 

But even with Europe's growth edging into the slow lane, a rise in Eurozone
bond yields on Wednesday signaled investors were getting less confident about
the central bank restarting the QE program it wound up only last December