FRANKFURT, Jan 2 ― European shares started the new decade on a strong note today on fresh monetary stimulus from Beijing and growing Sino-US trade optimism, while Airbus jumped after a report it toppled Boeing to become the world's biggest planemaker.
The European company was set for its best day in three months after Reuters reported it delivered a forecast-beating 863 aircraft in 2019.
The stock helped lift the wider French index by 1.3 per cent. The pan-European STOXX 600 index was up 0.9 per cent, after declining for two straight sessions as caution crept in about how long a US-China trade truce would last.
But US President Donald Trump brightened the mood on Tuesday by saying the Phase 1 agreement would be signed on January 15 at the White House.
Trade-sensitive miners led gains on the main index today, followed by European banks.
“The markets are still broadly riding high on the goodwill generated by the announcement that a Phase-1 trade agreement will be signed on January 15,” said Connor Campbell, financial analyst at Spreadex.
“(Beyond that) a lack of further escalation might be all investors can expect for the moment.”
The benchmark European index ended last year with its biggest annual gain since the global financial crisis on easing recession fears and a loose monetary policy by some of the world's biggest central banks.
Signalling that it stood pat to boost a flagging economy, China's central bank yesterday lowered the reserve requirement ratio for banks for the eighth time since 2018, with the latest cut freeing up around 800 billion yuan (RM470 billion).
Improving economic indicators from China and the United States had also powered global stocks to record highs last month.
Euro zone stocks jumped 1.1 per cent today despite latest data showing factory activity in the bloc contracting for the eleventh straight month.
Meanwhile, German shares rose 0.7 per cent, shrugging off figures that showed the manufacturing sector contracted further in December, with the rate of decline in production accelerating for the first time in three months.
London-listed shares climbed 0.9 per cent. Investors are closely tracking developments around Britain's departure from the European Union, set for January 31.
Missing out on the broader rally, Tullow Oil shares fell 6.1 per cent and were on course for its worst day in over two weeks as the oil producer said a reservoir in its newly struck oil well in offshore Guyana was below its pre-drill estimates. ― Reuters
