FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 2, 2019.REUTERS/Staff
January 15, 2019
LONDON (Reuters) – European shares bounced on Tuesday after China signaled more stimulus measures to soften the blow from an ongoing tariff war with the United States, triggering relief in trade-sensitive tech, mining, and car stocks as some results also impressed.
The pan-European STOXX 600 <.STOXX> was up 0.6 percent by 0829 GMT, with the trade-sensitive DAX <.GDAXI> up 0.8 percent and the FTSE 100 <.FTSE> rising 0.5 percent.
Sectors reliant on trade and exports to China, like tech, industrials, basic resources, and autos, were the top gainers.
The autos sector <.SXAP> jumped 2.2 percent to its highest since Dec. 5 on the stimulus news and after a strong update from Peugeot maker PSA Group <PEUP.PA> soothed investors’ concerns about carmakers facing slowing demand in China.
Shares in the carmaker climbed 2.3 percent to their highest since mid-November after reporting record sales for 2018.
Staffing company Hays <HAYS.L> also shone after strong results which showed an 8 percent rise in quarterly net fees, boosted by strong hiring in Germany, its biggest market.
M&A was a driver with Swedish telecoms company Millicom <TIGOsdb.ST> up 4.7 percent after a bid from Liberty Latin America <LILA.O>.
Kinnevik <KINVb.ST>, the majority stakeholder in Millicom, rose 4 percent among top STOXX gainers.
On the negative side, UK bookmakers Paddy Power Betfair <PPB.I>, William Hill <WMH.L>, GVC Holdings <GVC.L> and 888 Holdings <888.L> fell 1.7 to 3.2 percent after the U.S. Justice Department published an opinion which could further restrict online gambling.
Chocolate maker Lindt & Spruengli <LISN.S> fell 3.1 percent after reporting sales rose 5.1 percent in 2018, in line with its “around 5 percent” goal, but highlighted the market environment remained “very challenging”.
And among mid-caps, shares in sub-prime lender Provident Financial <PFG.L> plunged 20 percent after it issued a profit warning, citing higher impairments at its credit card business Vanquis Bank.
(Reporting by Helen Reid; editing by Josephine Mason)