European Shares Rise for Third Day as Trade Optimism Grows
(Bloomberg) -- European shares advanced for a third straight day amid growing optimism over U.S.-China trade talks and a deal averting another partial government shutdown in America.
The Stoxx Europe 600 rose 0.2 percent as of 8:05 a.m. in London, extending its three-day gain to 1.6 percent, led by cyclical sectors such as autos and chemicals. ABN Amro dropped 4.9 percent after disappointing earnings scuppered plans to boost its dividend. Heineken NV gained 4.6 percent and Akzo Nobel NV added 3.4 percent, both on better-than-expected profit.
European markets extended the positive tone set by Asian trading after U.S. President Donald Trump said he’s open to extending a March 1 deadline for raising tariffs on Chinese products if the two sides are near a deal. Meanwhile, in Washington there are signs Trump will accept the proposed legislation to keep government agencies open while exploring other ways to provide more funding for a border wall.
“Equity markets appear to be the enacting the maxim of ‘see no evil, hear no evil and speak no evil’ as they continue the rebound that has been in place since the beginning of the year, on optimism that we will get some form of fudge when it comes to a U.S., China trade deal,” Michael Hewson, chief market analyst at CMC Markets U.K., wrote in emailed comments.
On Europe’s own political front, Brexit talks look set for a showdown right before the country’s scheduled departure from the EU, raising the risk of a chaotic no-deal exit. In Spain, the likely defeat of Prime Minister Pedro Sanchez’s budget in Parliament on Wednesday may force the Socialist leader to call a snap election.
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