On Wednesday, the 9th of January, 2019, the European shares rallied, galvanized largely by the export-oriented auto and tech sectors, as trade optimism balloons and risk appetite appears to be moderating. Wednesday’s market factually outnumbered the worries of an economic slowdown and recession risk, as European and Asian stock surged despite poor manufacturing data.
The Pan-European stocks lifted by 0.9 percent, breaking in to a fresh three week high, while the UK’s FTSE 100 had posted its highest gain in five weeks, up 0.66 percent and Germany 30 gained 1.1 percent. The Auto stocks, SXAP surged by 2.8 percent, led by the gains of Daimler alongside BMW, both of which manufacture US autos for Chinese markets.
Daimler rose 3.3 percent during the European trading session, while BMW posted a 1.9 percent lift and Fiat added a 3.7 percent gain. Tech stocks surged 2.2 percent, despite gloomier sales figure from Apple Inc. Luxury stocks exposed to trading with China had jumped 2.6 percent.
A rare lift of copper price should be another indication of increasing manufacturing activity all over the world, while the analysts did not sound cheerful, as multiple analysts have been quoted saying that they have had enough vague vibes and unless there has been a substantial data to hold on, the fund managers would keep cautioning their clients.