European shares at record high as cross-Atlantic trade tensions abateJanuary 17, 2020
European shares touched a record high on Friday after EU Trade Commissioner Phil Hogan struck a positive tone on talks with Washington, soothing some concerns over a possible escalation in trade tensions between the cross-Atlantic allies.
The pan STOXX 600 index rose as much as 0.8% to a record high of 423.80, and was set to mark its best week since late-December.
The meeting is a step forward in addressing long-standing issues such as a French digital tax and aircraft subsidies.
It also added to investor optimism after the United States and China signed an interim trade deal earlier in the week.
“The positive comments surrounding one of the United States’ other trade conflicts – with the EU – it just adds to the overall feeling of relief,” said Connor Campbell, analyst at British financial spread better Spreadex.
The trade-sensitive miners subindex was the best performer for the day, with BHP Group, the world’s largest miner, and a major Chinese supplier, rising 1.2%.
Stocks in Germany , the EU bloc’s largest economy, rose 0.7%, with technology stocks serving as the biggest boost. Germany, which has a largely export-reliant economy, stands to gain substantially from easing trade tensions.