European shares stabilized on Monday as trade tensions between China and the United States seemed to have calmed down. This happened as a probable coalition arrangement in Rome to form a new government launched Italian stocks higher.
The pan-European STOXX 600 index ended flat. It had reclaimed lost ground after Friday’s sell-off set off by another round between the United States and China throwing tariffs at each other.
European equity markets were sure to follow their Asian counterparts into deep losses. It rebounded however, after U.S. President Donald Trump commented that Beijing had reached out to Washington in order to restart negotiations.
The change in tone came after China said it was willing to resolve the trade dispute with the U.S. through “calm” negotiations.
In corporate territory, German real estate stocks came under pressure after a report that Berlin planned to cap rents. Shares in Deutsche Wohen (DWNG.DE) slid nearly 3%.
Meanwhile, European stocks have swung widely in August.
Concerns that the U.S.-China trade war would eventually tip the global economy into recession had the European stock swinging wildly in August, setting the STOXX 600 index on course to end August lower.
Italian markets outperformed, with Milan’s FTSE MIB closing 1% higher as the opposition Democratic Party and the anti-establishment 5-Star Movement inched toward a deal on forming a coalition government in Rome.
The sticking point between the two traditionally antagonist parties is whether or not the prime minister Guiseppe Conte stays in his job to lead a new alliance.
“With all major players of the centre-left apparently eager to avoid snap elections, chances are that the distribution of top jobs can eventually be resolved,” said Berenberg economist Holger Schmieding.
If the agreement doesn't fall through, Eurozone’s third-largest economy could be faced with months of political uncertainty, a mounting fiscal deficit, and a probable conflict with the E.U. over its budget plans.
June had seen Japan’s industrial output breaking its four-month slump. The recuperation could be attributed to a modest recovery seen in broader business and consumer activity after the world’s third-biggest economy suffered from ...
European shares traded lower earlier on Thursday after underwhelming earnings reports dampened a U.S. Fed vow to continue rolling out stimulus plans in a bid to soften the economic blow of the COVID-19 pandemic. The pan-European STOXX lost ...
On Wednesday, European stocks rose slightly after mixed earnings reports. However, the new wave of the coronavirus outbreak kept investors cautious while they also wait for the U.S. Federal Reserve’s announcement. The Stoxx Europe 600 ...
European stocks traded slightly higher on Tuesday ahead of a U.S. decision to roll out additional stimulus plans despite the underwhelming quarterly earnings reports from the luxury goods market. The pan-European STOXX index inched higher ...
Samsung Electronics’ shares joined TSMC, its competitor, as both extended gains on Tuesday. This was mainly from upbeat expectations that Intel Corp’s plan of outsourcing more chip producers would favor the chipmakers. Shares of ...