Fresh Sino-US trade deal hope hauls European shares to 21-month peak


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Fresh Sino-US trade deal hope hauls European shares to 21-month peak

On Monday, the 28th of October 2019, buoyed up by automakers alongside miners over optimism that the US and China might have been closer to a trade deal, a basket of European bourses had spiked to their highest level since January 2018, extending the rally of European shares into its sixth straight day in a row, while a drop in Financials led by HSBC rubbed out some of the gains of Monday (October 28th) Market.

In point of fact, following reveal of a media report that US President Donald Trump said to the reporters a significant part of the trade deal was expected ahead of schedule, had fuelled up Wall St. and lifted S&P 500 index at its best-ever closing high, while tech-heavy Nasdaq was just a notch shy of its lifetime closing high, which eventually had obliviated frets related to a global-scale slowdown and ramped up risk-appetite among European traders.

Meanwhile, on Monday (October 28th) market closure, as European automakers index .SXAP climbed 1.8 per cent, propelling to a roughly six-month peak, the commodity linked stocks’ index of European shares .SXPP gained 1.5 per cent on a softer American dollar alongside optimism of a Fed rate-cut as early as later this week.

Aside from that, addressing to plausible sign of progress in Sino-US trade talk, a senior market analyst at UK & EMEA at OANDA, Craig Erlam said on Monday’s (October 28th) European market closure, “If the Phase 1 (of the U.S.-China trade deal) has been agreed upon, it’s a massive step forward - that is a strong and real signal to investors that progress is being made.

” Quoting statistics, on Monday’s (October 28th) market wrap-up, London’s FTSE 100 ended the day with little change at 7,331.28, French CAC 40 added 0.15 per cent to 5,730.57, while Germany’s trade-sensitive DAX 30 rose 0.37 per cent to 12,941.71 on Monday (October 28th) market closure.

Elsewhere in Europe, Madrid’s IBEX 35 index added 0.60 per cent to 9,450.40, while Italy’s MIB FTSE mushroomed 1.62 per cent to 22,712.19 on Monday’s (October 28th) market wind down.