Reports

12 تشرين ثاني 2019, 10:12
CNBC Elliot Smith
European stocks cautiously higher amid hopes US will delay EU auto tariffs

European stocks traded cautiously higher on Tuesday morning after reports suggested U.S. President Donald Trump is expected to delay a decision on whether to impose tariffs on EU autos by six months.

 

The pan-European Stoxx 600 rose by 0.2% in early deals, with auto climbing 0.7% to lead gains as most sectors and major bourses edged into positive territory.

Market sentiment has been lifted slightly after reports that President Trump would announce a delay to EU auto tariffs this week, potentially averting another damaging dispute with a major U.S. trading partner.

Stocks in Asia were mixed on Tuesday afternoon as concerns over the state of U.S.-China trade discussions and an escalation of violence in Hong Kong weighed on markets.

Investors continue to await direction on trade talks between Washington and Beijing after President Trump on Friday denied claims by the Chinese Commerce Ministry that the two sides had agreed to roll back existing tariffs on each other’s goods.

Back in Europe, the upcoming British general election took a turn after Brexit Party leader Nigel Farage agreed for his party to stand aside in 317 seats held by Prime Minister Boris Johnson’s ruling Conservative party, in a bid to prevent anti-Brexit lawmakers winning control of parliament. Sterling rallied on the news as investors anticipate that the move will seal an election victory for the prime minister.

In corporate news, Hong Kong’s securities regulator announced Monday that it has fined Swiss lender UBS $51.09 million for overcharging up to 5,000 clients for nearly a decade.

Earnings are back in focus Tuesday after Infineon reported reported a fourth-quarter post-tax profit of 161 million euros ($177.66 million) in line with expectations.

Deutsche Post beat analyst expectations to post an almost three times increase in third-quarter operating profit before the bell, with earnings jumping to 942 million euros from 376 million a year ago.

On the data front, U.K. employment figures are due at 9:30 a.m. London time before German economic sentiment and current conditions data at 10:00 a.m.