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European Shares Hold Steady After US-Mexico Trade Deal


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(RTTNews.com) - European stocks were mostly higher on Tuesday as the U.S.-Mexico trade deal helped boost optimism for an easing of global trade tensions, which have been building up for months now.

U.S. President Donald Trump also indicated the U.S. would soon begin negotiations with Canada, but suggested that any agreement could be a separate deal. Investors expect Canada too would agree to the new terms to preserve a three-nation pact.

The pan-European Stoxx Europe 600 index was up 0.1 percent at 385.90 in late opening deals after hitting a two-week higher earlier in the day. The benchmark index rose half a percent in the previous session.

The German DAX was moving up 0.2 percent and France's CAC 40 index was gaining 0.1 percent.

The U.K.s FTSE 100 was rising 0.4 percent and the pound weakened as traders returned to their desks after a long holiday weekend.

The pound hit a one-year low versus the euro after British Prime Minister Theresa May said that leaving the EU with no agreement in place "wouldn't be the end of the world".

Automakers led the surge, with BMW, Daimler, Volkswagen, Renault and Peugeot rising 1-2 percent.

Miners Rio Tinto, Anglo American and Glencore jumped 1-3 percent in London on optimism over improving global trade outlook.

Lloyds Banking Group rose about 1 percent after completing a £1 bn share buyback program.

NMC Health jumped 3.6 percent. The British healthcare provider has denied media reports regarding acquisition of assets in India.

Melrose Industries rallied 2.2 percent. The turnaround group behind the £8bn hostile takeover of engineering group GKN, has put the sale of Ergotron on hold, the Financial Times reported.

Danish brewer Royal Unibrew jumped 4.6 percent after the company achieved the best half-year results in the Group's history.

Lender Sydbank slumped almost 10 percent after unveiling its second-quarter earnings results.

In economic releases, France's consumer confidence held steady for the second straight month in August, in line with expectations, survey data from the statistical office Insee showed.

The consumer sentiment score came in at 97 in August, the same reading as in the previous two months.


Read the original article on RTTNews (http://www.rttnews.com/2929925/european-shares-hold-steady-after-us-mexico-trade-deal.aspx)


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