LONDON (Reuters) – European shares closed higher on Tuesday as investors cheered positivity around U.S.-China trade talks and signs of a compromise to avoid another U.S. government shutdown, while Michelin’s results pumped up automotive stocks. Pedestrians pass the London Stock Exchange in London, Britain August 15, 2017. REUTERS/Neil Hall The pan-European STOXX 600 was up 0.5 percent, with Germany’s trade-sensitive DAX advancing 1 percent and Paris’ CAC 40 up 0.8 percent. Automakers and their suppliers were the biggest gainers, up 2.9 percent after Michelin delivered better than expected results and pledged further gains in operating profit this year despite challenging conditions. The French tire maker’s shares rallied 13 percent for their best day in nearly a decade. Italy’s Pirelli and Germany’s Continental were among the biggest gainers in their domestic markets and on the STOXX 600. London indices underperformed their euro zone peers as the pound rose slightly after a parliamentary address by British Prime Minister Theresa May, in which she asked for more time to secure a Brexit deal. Gucci owner Kering was another winner, with its shares turning positive in mid-morning trade as investors took comfort from upbeat comments on the first-quarter outlook. Its shares had fallen as much as 3.3 percent in early trade as better than expected sales initially failed to impress investors in a sign of the demanding expectations for luxury brands after solid numbers from the sector, including LVMH last week. The shares closed with a 3.3 percent gain. Thyssenkrupp fell 2 percent after… [Read full story]
Leave a Reply