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Shares rise as China reins in tariff move

Video Credit: Reuters Studio - Duration: 01:34s - Published
Shares rise as China reins in tariff move

Shares rise as China reins in tariff move

European shares rose to six-week highs on Wednesday, as China eased trade worries.

As David Pollard reports, corporate headlines and hopes of ECB policy easing also drove the action.

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China is to exempt some U.S. goods from extra tariffs - as Washington and Beijing prepare for new talks.

Markets took the headlines from the trade war front as positives on Wednesday (September 11).

Shares opened around half a per cent or more up as investors saw signs of a thaw in relations.

They were cool about Inditex though.

The Zara owner - and world's biggest fashion retailer - saw two per cent trimmed from its shares.

Despite strong sales growth, its numbers revealed a weaker-than-expected rise in profit margins.

French supermarket group Casino saw gains of two per cent or more in early trade, on speculation that Europe's biggest retailer, Carrefour, is mulling a bid.

Carrefour says no offer's on the table.

And shares in newcomer to Europe, Prosus, rocketed 25 per cent after their debut in Amsterdam.

Prosus comprises South African e-commerce group Naspers' internet assets - including a 31% stake in Tencent of China.

Also on the radar: Thursday's ECB policy announcement.

Analyst Robert Halver of Baader Bank.

(SOUNDBITE) (German) HEAD OF CAPITAL MARKET ANALYSIS AT BAADER BANK, ROBERT HALVER, SAYING: "Many, including myself, expect a rate cut this week.

That would make it clear that the ECB remains in the fast lane as far as monetary policy is concerned." But even with Europe's growth edging into the slow lane, a rise in euro zone bond yields on Wednesday, signalled investors were getting less confident about the central bank restarting the QE programme it wound up only last December.



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