European shares climb with the hope of relieving US trade tensions
European shares beat higher on Friday, because investors bet on the de-estimation in a trade war before discussion between the US and China during the weekend.
The Pan-European Stoxx 600 index rose 0.3%, in 0708 GMT, with all regional bouurses traded higher, led by an increase of 0.7% in the German DAX Benchmark index.
Energy (.SXEP) and Basic Resources (.SXPP) recorded most of the benefits between European sectors, each rising 1.8% and 1%.
US President Donald Trump on Thursday estimates that 145% of import tariffs are likely to fall when officials from the top two economies in the world are preparing for negotiations in Switzerland.
Washington will launch a dozen trading agreement over the next month, but the 10% tariff charged to most countries is likely to stay, US Trade Secretary Howard Lutnick told CNBC on Thursday, when the US announced a limited bilateral trade agreement with Britain.
“The reason why global equity is kicking is only the hope that the US-China renewal on weekends in Switzerland will be ‘something’,” said Benjamin Ford, a strategist at Macro Hive.
The STOXX 600 index to fourth successively, rising weekly, up around 13.7% from early April in the hope that the US will reach an agreement to prevent damaging trade war. European assets also benefit from the flow of investment from the United States.
The results of the company on Friday are also mostly optimistic.
Commerzbank shares ignore the initial weakness to 2.5% after the German lender posted a surprising profit growth in the first quarter.
Sonova rose 5.8% after the Swiss hearing aid maker estimated higher sales and profitability for the 2025/26 fiscal year.
Stocks in Bavaria Nordic jumped 12% to the highest since the end of February after the first quarter revenue of the Danish Biotek company defeated market expectations.
Of the 149 companies in the Stoxx 600 which reported the results of the first quarter until Tuesday, 58.4% exceeded the estimated analyst for income, far above the 54% beat in the typical quarter, according to Ibes Refinitiv data.
The busy central bank meeting ended with the US federal reserve ownership rate and the Bank of England gave a decrease in a quarter -quarter point rate of this week in the background of the Global Trade War which threatened to slow down growth and trigger inflation.
Boe Governor Andrew Bailey told the BBC on Friday that Britain needed to rebuild its trade relations with the European Union.
Britain and the European Union held a peak meeting on May 19 which could cause closer defense cooperation and open the way for agreements to facilitate trade.
Source: Reuters
