Europe close: Stocks extend gains amid US-China trade deal optimism
Stocks across the Continent extended their recent gains following reports that the US and China had agreed to begin rolling back previously-imposed trade tariffs as part of a phase one trade deal.
According to Chinese Commerce Ministry spokesman, Gao Feng, Washington and Beijing had agreed to begin unwinding their tariffs as trade talks progressed, adding that both sides should do so in a proportional and simultaneous fashion.
"Both sides have agreed to cancel additional tariffs in different phases, as both sides make progress in their negotiations," Gao said.
"The threat of global trade wars is waning, driving a fresh leg higher in risk appetite and in risk assets like equities and oil, while the usual safe havens are in retreat. These trade war headlines provide the entertaining movements in markets, but they are the noise in a steady, grinding bull market that appears to be entering a more powerful phase after the volatility and confusion of 2018 and 2019," said IG chief market analyst Chris Beauchamp.
Financial markets were thus left waiting for Washington's side of the story.
Against that backdrop, the pan-European Stoxx 600 ended the day up 0.37% at 406.56, alongside an advance of 0.83% to 13,289.46 for the German Dax and a gain of 0.41% to 5,890.99 for the Fench Cac-40.
Italy's FTSE Mibtel meanwhile was higher by 0.56% to 23,503.03.
Meanwhile, front month Brent crude oil futures added 1.12% to $62.44 a barrel on the ICE while December gold on COMEX retreated 1.84% to $1,465.60/oz..
In the corporate space, shares of Osram Licht AG were higher after Austrian suitor AMS sweetened its £3.9bn offer, proposing a a lower acceptance rate and concessions for Osram's unions.
Elsewhere, America's Tiffany&Co. offered to open up its books to LVMH if the French luxury goods maker raised its £11.31bn takeover offer, pushing shares in the latter higher.
Back on the economic front, Germany's Ministry of Finance reported a 0.6% month-on-month drop in industrial production for September (consensus: -03.%), with the shortfall partly made up by a small upward revision to figures for the prior month.