European shares rise on trade hope, Frankfurt's DAX up by 1%


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European shares rise on trade hope, Frankfurt's DAX up by 1%

On Wednesday, the 9th of October 2019, a basket of European bourses had ended the day in an upscaled note, while Germany’s trade-sensitive DAX tallied its best intra-day gain in more than six months, as investors’ sentiment appeared to have hooked into a bullish wing following signs of progress on Sino-US trade relation a day ahead of a high-stake minister-level trade negotiation between USTR Robert Lighthizer, US Treasury’s Mnuchin and China’s Vice Premiere Liu He.

In point of fact, following reveal of a Bloomberg report that said Beijing was still open to a partial trade deal despite some US moves escalating trade rows further such as blacklisting of more than 50 Chinese companies alongside state government entities and AI start-ups, investors’ sentiment brightened dramatically.

Aside from that, while China’s latest move was widely seen as an act of compromise to smoothen up trade relations amid a sluggish global economy, as cited in a Wednesday’s (October 9th) Bloomberg report, addressing that Wednesday’s (October 9th) rally of European bourses was almost entirely prodded by optimism of a Sino-US trade deal, a head of International Trade Analysis at ING, Raoul Leering wrote in a client note, “At first glance, recent news provides at least some reason to be a bit more optimistic about the U.S.-China trade talks.

But there’s scant evidence that the two sides are willing to change their positions enough to break out of the current deadlock. ” Quoting statistics, on Wednesday’s (October 9th) market wrap up, London’s FTSE 100 rose 0.33 per cent to 7,166.50, regional STOXX50E gained 0.85 per cent to 3,462.11, French CAC 40 added 0.78 per cent to 5,499.14, while Madrid’s IBEX 35 soared 0.58 per cent to wind down the day at 8,991.90.

Elsewhere in Europe, leading the charges of European bourses’ Wednesday (October 9th) rally, Frankfurt’s DAX mounted 1.04 per cent, while Italy’s MIB FTSE surged 0.60 per cent to wrap up the day at 21,533.64.