European Shares Rise On Brexit Deal Hopes
European stocks rose broadly on Thursday and the dollar dipped against the euro and pound on the buzz that the U.K. and the European Union clinched a tentative deal that would grant U.K. companies continued approach to European markets after Brexit.
The U.K. and EU negotiators entered into a tentative deal on all aspects of a future partnership on services, as well as the exchange of data, the Times reported.
Investors also awaited the Bank of England’s interest-rate decision, the latest quarterly inflation report and Governor Carney’s press conference for directional cues.
The pan-European Stoxx Europe 600 index was up half a percent at 363.34 in opening deals after climbing as much as 1.7 percent the previous day.
The German DAX was also up half a percent and France’s CAC 40 index was marginally higher while the U.K.’s FTSE 100 was down about 0.1 percent amid the resurgence of the pound.
Arcelor Mittal shares rose 0.8 percent. The world’s largest steelmaker reported a profit for third quarter that dropped from the same period last year as a result of impairment charges.
Swiss Re advanced 1.5 percent. The reinsurer reported a Group net income of US$1.1 billion for the first nine months of 2018 compared to a loss of US$468 million for the same period.
Mining giant BHP Billiton rose over 2 percent after announcing a share buyback and special dividend.
BP Plc, Royal Dutch Shell and Tullow Oil lost 2-3 percent as oil extended losses from the previous session on signs of rising supply.
BT Group shares jumped more than 9 percent. After reporting a rise in first-half earnings, the broadband company said it expects FY18 EBITDA to be at the upper end of range.
Investment bank Credit Suisse tumbled 3.2 percent after posting weaker-than-expected third quarter earnings.
Dutch bank ING jumped 5 percent after it reported encouraging earnings results on an underlying basis.
ASM International soared 16 percent after issuing a bullish outlook.
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