Europe open: Stocks gain on trade truce extension hopes; Heineken fizzes higher
European stocks rose in early trade on Wednesday, tracking gains in the US and Asia amid hopes that the US and China will agree an extension to their trade truce.
At 0835 GMT, the benchmark Stoxx Europe 600 index and France's CAC 40 were up 0.4% to 364.16 and 5,078.28, respectively, while Germany's DAX was 0.6% higher at 11,192.28.
The positive mood came as US President Donald Trump said he could extend the 1 March deadline to reach a trade deal with China if the two sides are making good progress.
Spreadex analyst Connor Campbell said: "With the ongoing negotiations in Beijing paving the way for Thursday’s top tier tete-a-tete between Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer on one side, and Vice Premier Liu He on the other, the pressure may have been taken off oh so slightly following some interesting comments from Donald Trump overnight.
"Still yet to sign the shutdown-avoiding deal agreed on by Democrats and Republicans - the announcement of which was the other major market-booster on Tuesday - the President claimed that if the US and China were close to a ‘real deal’ then he could let plans to immediately hike tariffs on March 1st ‘slide for a little while’."
On the corporate front, Dutch brewer Heineken fizzed higher as its full-year earnings beat expectations, with revenue and margin ahead of consensus, while Dulux owner Akzo Nobel also gained on the back of solid fourth-quarter numbers.
Shares in Europe's largest asset manager, Amundi, were on the rise after it confirmed its profit targets for 2020 and lifted its earnings per share for 2018.
Elsewhere, French corporate and investment bank Natixis pushed up even as it said fourth-quarter profit fell as it booked a €260m loss on Asian derivatives.
Speciality chemicals company Clariant was in the red as it posted a drop in fourth-quarter sales and operating profit, while Dutch bank ABN Amro retreated as its fourth-quarter net profit undershot analysts' expectations.