Fundamental Comment

European equities rise ahead of signing trade deal

European equities rise ahead of signing trade deal

European equities rose during Tuesday’s trading, as markets awaited the signing of the phase-one trade agreement between the United States and China, ahead of the beginning of the U.S. earnings season.

As of 10:58 GMT, the Euro STOXX 600 was 0.07 percent up at 418.64, still close to the all-time high of 421.43 recorded on January 9.

France CAC 40 soared 0.010 percent at 6,036.95 and Germany’s DAX ascended 0.14 percent to 13,470.93. In Britain, FTSE 100 surged 0.18 percent to 7,631.11.

The rise in European shares came as investors waited to sign of the trade deal between the United States and China and after Washington’s lifting of the currency-manipulator label from Beijing.

The Phase one of the U.S.-China trade deal is supposed to be signed on Wednesday in Washington.

Another positive development emerged as the U.S. lifted its designation of the country as a currency cheat.

Investors are currently preparing for the release of corporate earnings today, as JPMorgan Chase & Co. and Citigroup Inc. announces their financial results.

On Monday, the heavy-tech Nasdaq Composite climbed more than 1 percent to finish at a record high of 9,273.93 and the S&P 500 index edged 0.7 percent up to end at 3,288.13.  

Meanwhile, the dollar index, which measures the performance of six major currencies against the U.S dollar, traded slightly higher at 97.11, ahead of the release of U.S. consumer prices data.

The consumer price index in the U.S. may have surged 0.2 percent last month, following a 0.3 percent advance in November, according to median forecasts.

Crude oil rose for the first time in seven sessions on Tuesday to trade at $58.38 a barrel after hitting a six-week low at $57.72.

Share Article