On Monday, the 1st of July, European shares were surged to their highest levels in almost two months, while trade sensitive technology sectors had been leading the charges after US and China had agreed to restart trade talks after a premature ending of May’s Sino-US trade negotiation.
The regional Pan-European STOXX 600 added 0.8 percent, while STOXX 50 index of Europe’s largest stocks spiked 1.3 percent on Monday (July 1st) and reached its highest level since February 2018. On Saturday (June 29th), a long-anticipated Trump-Xi meeting had conceived a gush of good news for the financial markets, as both sides had offered concessions, while Trump said he would ease ban on world’s No.
1 telco gear maker, China’s Huawei, and China had agreed to purchase more US agricultural goods. Besides, the leaders of the world’s two largest economies had agreed to restart their trade negotiations. Stocks across the globe reacted positively over the news, while in Europe, Frankfurt’s trade-sensitive DAX added 1 percent, and European tech index, .SX8P gained 1.9 percent on Huawei relief.
A bunch of other European semiconductor makers including Infineon and ASM International added gains between 3.7 to 5.6 percent, while analysts had been calling Monday’s (July 1st) gain as a temporary relief rally, as downbeat factory data across the globe would soon pour scorns on investors’ optimism, suggested analysts.
Quoting statistics, on Monday (July 1st) market closure, Germany’s DAX added just a notch shy of 1 percent as beforementioned to 12,521.38, while France’s CAC 40 wrapped up the day 0.52 percent higher to 5,567.91, and London’s FTSE 100 surged 0.97 percent to 7,497.50.
Meanwhile, Italy’s FTSE MIB index winded up the day flatlined at 21,254.04 after rising as much as 0.86 percent during the morning European trading hours.