11 Oct 2019
New York – European shares rose on Thursday as early signs of positive progress in U.S.-China trade talks emerged and hints of a potential Brexit deal cheered up retail stocks.
Investors were hopeful on Thursday after U.S. President Donald Trump tweeted he would meet Chinese Vice Premier Liu He on Friday for further trade talks, confirming the Chinese delegation would not be cutting the two-day negotiations short, reports Yahoo Finance.
"The gulf between the two sides is wide, but a willingness to sit down and negotiate has injected some hope into the markets," said David Madden, a market analyst at CMC Markets UK.
The latest trade comments fueled optimism that had been dulled after China urged the United States to stop unreasonable pressure on Chinese companies. In this regard, ‘The South China Morning Post’ also reported that the two sides made no progress in deputy-level trade talks earlier in the week. The next round of U.S. tariff hikes on 250 billion dollars’ worth of Chinese goods will take effect on October, 15.
On the wake of the news, Louis Vuitton owner LVMH's 5.6 percent jump on strong sales was the biggest boost to the index and lifted stocks across the luxury goods sector.
Gucci-owner Kering, Burberry, Christian Dior and Moncler climbed between 0.7 percent and 4.2 percent, with the Paris listed luxury fashion companies pushed the French benchmark index to its best day in six-weeks.
Meanwhile, in London, the British FTSE 100 climbed 0.3 percent, despite a rallying pound, after the UK and Irish Prime Minsters said they saw a pathway to a possible Brexit deal.