European Shares Rise On China Data
European stocks advanced on Wednesday even as trade worries deepened after U.S. President Donald Trump and Commerce Secretary Wilbur Ross suggested the U.S.-China trade deal might have to wait longer until after the 2020 presidential elections.
Underlying sentiment improved somewhat after data showed activity in China’s services sector accelerated to a seven-month high in November, hinting at short-term stabilization in the world’s second-largest economy.
Closer home, the euro area private sector growth remained the lowest in six-and-a-half years in November, signaling modest expansion for the fourth quarter, final survey data from IHS Markit showed.
The composite output index held steady at 50.6 in November, coming in slightly above the flash estimate of 50.3.
The IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) fell in November to 49.3 from October’s 50.0 due to uncertainty over Brexit and an imminent national election.
The pan-European Stoxx Europe 600 index was up nearly 1 percent at 402.25 after declining 0.6 percent in the previous session.
The German DAX was climbing 1.1 percent, France’s CAC 40 index was up 1.2 percent and the U.K.’s FTSE 100 was gaining 0.3 percent.
Swiss drug maker Roche Group gained 0.7 percent. The company announced that the U.S. FDA has approved Tecentriq (atezolizumab) in combination with chemotherapy.
Chipmaker Infineon Technologies advanced 1.5 percent and STMicroelectronics added 2 percent as investors cheered upbeat earnings forecast from U.S. peer Microchip Technology.
Orange shares tumbled 4.3 percent after the telecom company presented its new strategic plan “Engage2025.” It announced the disposal of 1,500 non-strategic sites in Spain to Cellnex for 260 million euros.
Airbus rallied 2 percent on bagging an order from U.S. carrier United Airlines.
Miners were moving higher, with Rio Tinto adding 0.8 percent despite news that it has curtailed operations at its Richard Bay Minerals unit in South Africa amid violence nearby.
Anglo American gained 1 percent, Antofagasta climbed 2.5 percent and Glencore advanced 1.5 percent.
British American Tobacco shares dropped 0.8 percent as the pound hit its highest level against the dollar since mid-May amid hopes of a Conservative party victory in next week’s election.
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