AFP/Getty Images European stocks edged higher on Friday as markets looked set for calm at the end of an eventful week.
The Stoxx 600 SXXP, +0.33% rose 0.3%, the CAC PX1, +0.43% climbed 0.4% and the DAX DAX, +0.15% lifted 0.2% as equities built on Thursday’s gains after central banks across the globe loosened monetary policy.
U.S.-China trade talks resumed on Thursday for the first time in two months, boosting stocks, but gains were held back as Chinese state media played down a potential deal.
What’s moving the markets?
Asian markets rose overnight as trade negotiations between the world’s two largest economies resumed.
Chinese state media The Global Times said last night that China was “not as anxious” to do a deal as the U.S. had thought.
Beijing’s cautious stance along with White House adviser Michael Pillsbury warning that Donald Trump was ready to escalate the trade war, held back market gains.
David Madden, CMC Markets analyst, said: “The update is neither encouraging nor worrying, but it shows that China are keeping their cards close to their chest, as they don’t want to be seen to be very keen to strike a deal.
“In recent weeks the two sides has patched up their relationship a little, which helped stocks, but traders would like to see additional ground being made on a deal, before committing to further investments.”
Incoming European Central Bank President Christine Lagarde added to concerns, saying global growth was “fragile” and “under threat.”
The internationally-exposed FTSE 100 missed out on gains, trading flat after European Commission President Jean-Claude Juncker said a Brexit deal was possible, sending the pound higher.
Which stocks are active?
Rolls-Royce RR, -2.64% fell 2.6% after the British aircraft engine-maker warned of further delays in fixing problems with its Trent 1000 engines. The company’s target of fewer than 10 grounded aircraft to be delayed until the second quarter of 2020.
Thomas Cook TCG, -17.01% shares nose dived 16.5% as the travel operator confirmed that it needed to find a further £200m – on top of £900 million rescue deal with Chinese investor Fosun – to survive.
Casino Guichard-Perrachon SA CO, +2.30% climbed 3.1% after the French retailer said it was in talks to sell its Leader Price chain of discount stores to German rival Aldi.
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