London (AFP) – Europe’s main stock markets rose solidly Tuesday after a rally on Wall Street thanks to easing concerns over US President Donald Trump’s tariffs. Paris led the way with a gain of 1.1 percent approaching midday, while Frankfurt won 0.9 percent and London advanced 0.6 percent. “There is nothing better than a solid day on Wall Street to lift investor sentiment across the pond,” noted Russ Mould, investment director at AJ Bell.
The positivity came also after data revealed that German business confidence rose in March, as a massive government spending plan promised to get Europe’s largest economy rolling once again. Asian markets closed mixed as traders focused on more domestic matters, while the dollar dropped waiting for US inflation data this week that could firm expectations of fresh cuts to interest rates later this year in the world’s biggest economy.
Hong Kong sank 2.4 percent, weighed by a drop of around six percent in Chinese tech giant Xiaomi, which raised $5.5 billion in a mega share sale as it looked to expand its electric vehicle business. The deal, which comes after a similar move this month by EV firm BYD, stoked worries about market liquidity. Traders were also cashing in recent profits — particularly among high-flying tech firms — following an impressive surge in the Hang Seng Index that has seen it pile on around 20 percent since the start of the year.
A surge in tech giants, including Tesla and Nvidia, helped New York markets to a strong finish Monday, with sentiment buoyed by indications from the White House that next week’s glut of levies would be less severe than feared. Trump has dubbed April 2 “Liberation Day” as he pledges to impose reciprocal tariffs on trading partners in an effort to remedy practices that Washington deems unfair.
“The expectation is that the process will be more organised and structured than previous actions,” said Tony Sycamore, market analyst at IG trading group. “Whatever numbers are announced…are likely to be negotiated down from there.” Still, the president did provide a jolt by warning countries that crude bought and gas from Venezuela would face steep tariffs, a move that could hit China and India among others. Beijing on Tuesday accused Washington of “interfering in Venezuela’s internal affairs,” helping to support oil prices.
– Key figures around 1045 GMT –
London – FTSE 100: UP 0.6 percent at 8,691.66 points
Paris – CAC 40: UP 1.1 percent at 8,113.28
Frankfurt – DAX: UP 0.9 at 23,060.63
Tokyo – Nikkei 225: UP 0.5 percent at 37,780.54 (close)
Hong Kong – Hang Seng Index: DOWN 2.4 percent at 23,344.25 (close)
Shanghai – Composite: FLAT at 3,369.98 (close)
New York – Dow: UP 1.4 percent at 42,583.32 points (close)
Euro/dollar: UP at $1.0820 from $1.0805 on Monday
Pound/dollar: UP at $1.2947 from $1.2924
Dollar/yen: DOWN at 150.21 yen from 150.58 yen
Euro/pound: DOWN at 83.56 pence from 83.58 pence
Brent North Sea Crude: UP 0.6 percent at $72.78 per barrel
West Texas Intermediate: UP 0.6 percent at $69.52 per barrel
© 2024 AFP
