Play Video European stocks open higher as trade fears ease
European stocks traded higher Friday as investors shrugged off worries over the U.S.-China trade dispute.
The pan-European Stoxx 600 edged up 0.54 percent, with all sectors in positive territory. Among the bourses, Italy's FTSE MIB led the upward charge, over 1 percent higher.
Symbol Name Price Change %Change Volume FTSE --- DAX --- CAC --- IBEX 35 ---
Italy's spending deficit as a proportion of gross domestic product was slightly higher in 2017 than in the previous year, data showed Friday. Luigi Di Maio, the country's deputy prime minister, said earlier today that the government's flat tax and universal income policies would be integrated into its 2019 budget, raising concerns that it could head for a standoff with Europe over the proposed measures.
In dealmaking news, ride-hailing firm Uber is reportedly in early discussions to buy food delivery upstart Deliveroo for several billion dollars. Bloomberg, citing people familiar with the plans, said any offer would need to be considerably higher than Deliveroo's last reported valuation of more than $2 billion. Shares of listed competitors Just Eat and Delivery Hero fell on the news, down almost 8.5 percent and 2.2 percent respectively.
Looking at individual stocks, shipping firm Moller-Maersk climbed 2 percent after HSBC upgraded the stock to "buy" from "hold," and raised its price target to 11,100 Danish krone ($1,754) from 9,100 Danish krone.
Meanwhile, engineering company Smiths Group tanked 6 percent after the firm reported worse-than-expected full-year results. The group said its profits were hurt by short-term issues at its medical unit.
Brexit
Equities in Europe followed the positive sentiment globally, with Asian markets in the black on the back of sharp gains from Wall Street. The Dow notched its first record high since January while the S&P 500 reached an all-time high of its own, the first since August.
On the continent, Brexit continues to remain under the lenses of traders, after European leaders upped the pressure on British Prime Minister Theresa May at an informal summit in Salzburg, Austria. European Council President Donald Tusk said the U.K. leader's plan to withdraw from the European Union "will not work." May will next meet with EU officials on October 18.
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Moreover, purchasing managers' index data was slightly worse-than-expected, with the flash composite PMI figure coming in at 54.2, against a Thomson Reuters analyst forecast of 54.4.
