European shares recover from one-week low as trade talks resume

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By Euronews  with REUTERS BUSINESS
The German share price index DAX graph at the stock exchange in Frankfurt
The German share price index DAX graph at the stock exchange in Frankfurt   -   Copyright  REUTERS/Staff

Gain in heavyweight mining and banking stocks helped European shares recover from one-week lows on Monday as investors turned their focus to the start of a new round of trade talks between Beijing and Washington.

The STOXX 600 index was up 0.7 percent by 0828 GMT, helped by a broad-based bounce, while Germany's trade-sensitive DAX was up 0.6 percent and the UK's FTSE added 0.7 percent.

China struck an upbeat note as trade talks resumed with the United States, but also expressed anger at a U.S. Navy mission through the disputed South China Sea, casting a shadow over the prospect for improved ties between them.

The basic resources index rose 0.8 percent, leading sectoral gainers, as China iron ore prices hit a record on worries that supply from Brazil may fall after a dam accident.

Shares in Glencore, Rio Tinto and BHP were all up around 1 percent. Banks were also among the biggest sectoral gainers with Banco BPM up 3.3 percent after the mid-sized Italian lender disclosed capital requirements set by the European Central Bank.

Deutsche Post rose 2.6 percent on a report saying that Germany is set to grant the postal services firm a higher-than-expected increase in postage for letters from the summer to account for fewer letters sent and for higher costs.

Just Eat rose 1.3 percent after its shareholder Cat Rock urged the British takeaway ordering website to start merger discussions. Shares in rivals Delivery Hero and both rose nearly 1 percent.

Among the few fallers was Smith & Nephew, down 2.6 percent, following a report it has held talks to buy U.S. medical equipment maker NuVasive in a deal that would be worth more than $3 billion.