LONDON, U.K. – European shares edged higher on Wednesday as fresh comments from the US President Trump boost hopes for a resolution on the US-China trade war, boosting euro shares to hit new four-year highs.
The pan-Euro STOXX 600 index tracked about a 0.1% increased on shares, which was primarily powered up by the 0.8% gains of the trade-sensitive miners. The record highs in the Euro stock market came after the statement from the US President on Tuesday saying that Washington and Beijing are on the final throes of phase one of the trade agreement.
According to an analyst from the ETX Capital, Michael Baker, the Euro stock markets are going towards a more optimistic trend, showing that it could head up towards all-time highs similar to the stock market in the US. However, he also said that nothing is fixed on stone yet.
Euro stocks have inched higher this months, with the increasing hopes for resolving the long-standing US-China trade war leading shares to record highs. Previously, the trade war between two of the biggest economies in the world has hurt global growth and caused a massive decline in the stock market. But, market players are enjoying the recent hype on trade negotiations.
With the previous confusion on the trade deal, market players have turned focus to central banks in the biggest economies for hints on monetary policies to help with the global downturn. In September, the European Central Bank has sliced the interest rates down towards the negative territory with the US Federal Reserve, also bringing down the borrowing fees three times in 2019.
From a poll Reuters made on Wednesday, results showed that the benchmark Euro index is thought to continue edging higher, leading to a new record high before the end of next year, citing hopes for an orderly Brexit and loose monetary policies as major backers for the market.
The shares for the export-laden Frankfurt, on the other hand, were tracked with little to no movement on Wednesday. It was last seen trading flat, majorly shrugging off the numbers showing the sales at the shrinking of industrial firms in China, which was recording its fastest rate in eight months in October.
More optimistic was the Aroundtown, a real estate firm in Germany, which recorded about a 4% increase, hitting a new record high following the release of their “better than expected” results for the third quarter, which has raised its forecast for the entire year.
Wartsila, a power plant maker, and ship technology company in Finland, also increased by 3% following one brokerage rising its stock rating along with two other research firms lifting their price targets.