European shares hit one-month-peak on trade optimism


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European shares hit one-month-peak on trade optimism

On Thursday, the 5th of September, a basket of European stock indices extended their gains into second consecutive day after Chinese commerce ministry had said that it would hold a face-to-face trade talk with Washington as early as by next month, rekindling hopes that the top two economies of the world would make progress on a trade dispute which had been toiling trillions out of financial markets and putting major economies at recession risks.

On top of that, European stocks opened Thursday’s (Sept. 5th) market at an upbeat note after Chinese Commerce Ministry had confirmed that their team of trade negotiator would be talking to their counterparts in Washington by mid-September for arrangement of a trade negotiation as soon as by early October, while both sides had also reached an accord to act appropriately in order to create a favourable condition.

Meanwhile, citing Thursday’s (Sept. 5th) gain as an aftereffect of a bunch of positive headlines including favourable political development in Europe, a senior market analyst at OANDA in London, Craig Erlam said, “We’re in a market where investors are almost desperate for positive headlines and therefore this is having a buoyant effect.

Investors are hoping that we see a positive breakthrough, and the very least progress to another phase that could ultimately lead to a trade deal. ” Citing statistics, on Thursday’s (Sept. 5th) market closure, the regional Pan-European STOXX 600 added 0.33 per cent to hit its highest level since August 1st, while Germany’s trade sensitive DAX rose 0.64 per cent.

Nonetheless, London’s FTSE 100 lagged 0.55 per cent to wrap up the day at 7,271.17 in context of a much stronger pound sterling, while euro zone stocks including Italy’s FTSE MIB, French CAC and Madrid IBEX 35 added more than 1 per cent on Thursday’s (Sept. 5th) market wind down.