European Markets End Higher Again As Trade Worries Ease

(RTTNews) - European markets ended higher on Friday, extending gains from previous session, as investors continued to bet on hopes China and the U.S. will resume trade talks soon.

Comments from Chinese Ministry of Commerce on Thursday that it does not intend to retaliate against Trump's latest threat to raise the rate of tariffs on Chinese exports and the expression of interest shown by Chinese officials to negotiate with the U.S. to end the trade dispute helped keep investors sentiment positive.

Investors also cheered media reports suggesting that Germany is seeking to cap its corporate tax burden at 25 percent.

The pan European Stoxx 600 ended up 0.73%. The major markets in Europe ended on a firm note. France's CAC 40 gained 0.56%, Germany's DAX advanced 0.85% and the U.K.'s FTSE 100 ended up 0.32%, while Switzerland's SMI closed 0.58% up.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Sweden and Turkey ended with sharp to moderate gains.

Spain closed flat, while Italy and Ukraine ended weak.

Automobile stocks gained ground in positive territory on hopes some positives will emerge for the sector from new talks between the United States and China in September.

In London, shares of NMC Health climbed up nearly 7.5%. Micro Focus advanced 5.5%, rebounding from recent sharp losses. Rio Tinto, DS Smith, BHP Group, SSE, Glencore, Rolls-Royce Holdings, Ashtead Group, Marks & Spencer, Centrica and Anglo American gained 2 to 2.7%.

In the French market, Saint Gobain surged up 2.75% and Schneider Electric gained nearly 2%. Peugeot, Michelin, ArcelorMittal, Atos, Capgemini and Dassault Systemes ended stronger by 1.4 to 1.8%.

In Germany, Vonovia gained nearly 5.5%. Infineon advanced 2.2%, while Daimler, HeidelbergCement, Adidas, Merck, Wirecard, BMW and Siemens gained 1 to 1.7%.

Shares of Swiss drugmaker Novartis gained about 1.3% after the company announced positive study results for its prospective multiple sclerosis drug Ofatumumab.

Elsewhere, shares of retailer Shoe Zone plunged more than 30% to a record low after the company warned that its annual results would be below expectations.

In economic news, Germany's retail sales declined at the fastest pace seen so far this year in July, signaling weak household spending at the start of the third quarter.

Retail turnover decreased a faster-than-expected 2.2% month-on-month, reversing a 3% rise in June, official data showed.

However, on a yearly basis, retail sales rebounded 4.4% after falling 1.6% in June. This was the fastest increase in three months.

France's consumer price inflation remained stable in August, flash data from the statistical office INSEE showed. The consumer price index rose 1.1% year-on-year in August, as the same rate seen in July. Economists had expected a 1% rise.

An indicator reflecting the current economic situation in the euro area fell in August after rising in the previous month, survey data from the Bank of Italy and the Centre for Economic Policy Research showed.

The Eurocoin indicator dropped to 0.18 from 0.21 in July. In June, the reading was 0.14.

U.K. house prices increased 0.6% year-on-year in August, following a 0.3% rise in July, data from Nationwide Building Society showed.

Italy's gross domestic product remained unchanged sequentially in the second quarter, in line with the estimate released on July 31, data from statistics office Istat showed. GDP had expanded 0.1% in the first quarter.