Europe Stocks Set for Best Week Since 2016
(Bloomberg) -- European equities climbed, poised for their biggest weekly advance since the end of 2016, as reports about the U.S. President Donald Trump’s interest in reaching a trade pact boosted appetites for mining and automaker shares.
The Stoxx Europe 600 Index added 1 percent, set for a gain of 4.2 percent this week, as stocks recover from a brutal October. Glencore Plc jumped 3.3 percent and Daimler AG added 3.2 percent. IAG increased 4.1 percent after boosting its long-term profit goals.
Trade negotiations between the U.S. and China have been the key source of volatility for global stocks this year and investors embraced the news that Trump is interested in reaching an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina this month. Shareholders are carefully watching earnings results for signs that trade wars are eating into profits. Apple Inc. spooked the market on Thursday after an underwhelming forecast for the key holiday period suggested weaker-than-expected demand for the pricier new iPhone.
“The trade war has been partly to blame for the recent equities rout, so any signs that the two powers are making progress will encourage investors to put risk back on the table and pick up stocks at bargain levels,” Jasper Lawler, head of research at London Capital Group, said in a note.
©2018 Bloomberg L.P.