European shares helped by trade talk hopes; miners, autos up (updated)

Danske Andelskassers Bank A/S

19/09/2018 10:04

* STOXX up 0.1 percent
    * Miners, autos lead gainers
    * Adecco, Kingfisher down after updates

 (For a live blog on European stocks, type LIVE/ in an Eikon
news window)
    By Danilo Masoni
    MILAN, Sept 19 (Reuters) - European shares rose on Wednesday
on gains in trade-sensitive materials and auto stocks, though
disappointing updates from staffing firm Adecco  ADEN.S  and
home improvement retailer Kingfisher  KGF.L  weighed.
    The STOXX 600  .STOXX  rose as much as 0.3 percent to
two-week highs with sentiment buoyed by hopes that the United
States and China will return to the negotiating table after the
latest tariff round. 
    The pan-European benchmark index however pared some gains
and by 0841 GMT was up 0.1 percent.
    Washington and Beijing both announced fresh tariffs on
reciprocal imports this week, though the measures were less
severe than initially expected, bolstering hopes of a deal.
    "Our base-case scenario sees both parties negotiating a
settlement in the next 6–9 months," Credit Suisse strategists
said in their daily note.
    Caution however remained with some investors still wary that
U.S. President Donald Trump could seek to extend tariffs to all
Chinese imports.
    Earlier on Wednesday, Chinese Premier Li Keqiang said his
country would not engage in competitive currency devaluation and
will not weaken the yuan to boost exports.  urn:newsml:reuters.com:*:nB9N1BH00L
    Basic materials  .SXPP  were the biggest sectoral gainer, up
1.4 percent, after copper prices rose sharply as investors
shrugged off the risks of an escalation of the U.S.-China trade
row.  urn:newsml:reuters.com:*:nL3N1W51V0 
    Heavyweight miners Glencore  GLEN.L  and BHP  BLT.L  rose
1.8 and 1.5 percent respectively.
    Financials also provides support, although Danske Bank
 DABA.CO  fell 5.8 percent following the resignation of its CEO
and an updated on a money laundering probe that prompted the
bank to cut its full-year outlook.  urn:newsml:reuters.com:*:nL8N1W51BZ  
    Elsewhere earning updates drove share price moves.
    Adecco fell 4 percent after the world's largest staffing
firm said it has seen a slowdown in growth so far in the third
quarter. Its fall weighed on Dutch peer Randstad  RAND.AS . 
    RBC Capital said the slowdown was bad news but added that
the stock's valuation was cheap and that the company's end
markets remained relatively robust.  urn:newsml:reuters.com:*:nL8N1W51YI     
    Kingfisher reported a 15 percent fall in half-year profits,
sending its shares down 5 percent.  urn:newsml:reuters.com:*:nL8N1W50PU
    A solid update however lifted German automotive parts maker
Schaeffler  SHA_p.DE  up 3.2 percent. The company kept its
guidance for overall sales this year thanks to stronger orders
at its industrial division.
    Its gains helped, the autos sector  .SXAP , which has been
penalised this year by growing trade concerns rise 0.8 percent.

 (Reporting by Danilo Masoni
Editing by Andrew Heavens)
 ((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))