European markets trade higher; CAC index up 1%

The Stoxx Europe 600 Index rose, with automakers among the biggest gainers as Volkswagen AG revived plans for a partial share sale of its heavy-trucks division.

May 14, 2019 11:05 IST India Infoline News Service

European-Markets
European stocks rose alongside US equity futures on Tuesday, shrugging off losses in Asia as investors assessed the prospects for global trade in the wake of a brutal start to the week for markets. Haven assets including Treasuries, gold and the yen slipped.

Contracts on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 indexes all climbed after President Donald Trump predicted talks with China will be “very successful” even as the US prepares to hit the country with fresh tariffs.

The Stoxx Europe 600 Index rose, with automakers among the biggest gainers as Volkswagen AG revived plans for a partial share sale of its heavy-trucks division. Bayer AG plunged to the lowest in almost seven years after the company was ordered to pay more than $2 billion in damages related to its Roundup weedkiller.

In Asia, shares in Shanghai posted a modest decline, while Hong Kong equities slumped as the market re-opened after a holiday. The offshore yuan -- a key risk indicator due to concern China will use it to retaliate against US tariffs -- stabilized after a six-day decline that took it to the weakest levels of the year.

The trade tussle between Washington and Beijing is keeping markets on edge, as investors fear a bigger breakdown could damage global growth. On Monday, all three major US benchmarks ended more than 2% lower -- only the second time this year that’s happened -- after China targeted some of the biggest US exporters in response to American tariffs. The new penalties also took aim at farmers, driving down soybean and cotton prices.

Elsewhere, WTI oil traded above $61 a barrel as investors weighed potential disruption to demand from the trade spat against geopolitical tension in the Middle East that threatens supply. Bitcoin strengthened past $8,000 for the first time in about 10 months.

Source: Bloomberg

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