LONDON, UK – European shares traded up on Wednesday as it crested on a wave of positive sentiment. The region’s top indices have posted gains for three straight days as news about positive consumer figures from France and the promise of a US-China agreement bolstered investor confidence.
The Stoxx 600 rose by 0.4% to reach a four-year high. Shares of basic resources spearheaded gains with a 1.4% increase 1.4% while the leisure and travel stocks dipped 0.2%. Meanwhile, GDAXI shares were flat Wednesday as it ignored data showing profits from Chinese industrial companies dropping steadily and quickly in October.
German-based realty Aroundtown went up 4% to enjoy a record high. The company recently posted surprisingly positive third quarter figures and bumped up its whole-year forecast. Ship and power-plant smart technology developer Wartsila also made significant gains as it rose by 3%. One brokerage rated the Finnish company’s stocks higher while two research companies pushed their price targets up.
Individual stocks also had a good day. UDG Healthcare shares went up 6.5% after sharing sterling full-year results. Skandinaviska Enskilda Banken AB (SEB) also rose 3.5% on the heels of its claims that there’s no evidence linking the bank to firms sanctioned for their involvement in a Russian tax scam.
US shares also ended on record highs while the Asian market also climbed up. The MSCI’s index showed Asia-Pacific shares outside of Japan went up by 0.2%.
European stocks have been inching slowly towards a record-breaking peak this month solely on hopes that superpowers China and the United States would call an end to their trade war. The riff between the two have had a sobering impact on business sentiment and corporate investment and hammered down global growth.
However, US President Donald Trump announced on Tuesday that the White House was in the “final throes” of working out an initial trade deal. His comments further boosted the optimism generated by earlier comments from China’s key negotiators. According to them, the two countries finally have a consensus on how to resolve “relevant problems.”
Michael Baker, an analyst from ETX Capital, pointed out that European markets appear headed back to highs. He also noted that in the past, markets tend to have a negative response to the trade deal at some point. However, it would appear everything is progressing smoothly, and the markets are taking advantage of it.
Consumer confidence data from France went beyond the expectations of analysts to reach 106 in November. It was at 104 last October. It’s the highest the numbers have been since 2017. The surprising data provided that extra boost to tentative stocks on Wednesday.