This content is not available in your region

Post-holiday catchup for Germany drives European stock gains

Access to the comments Comments
Post-holiday catchup for Germany drives European stock gains
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June7, 2019. REUTERS/Staff   -   Copyright  STAFF(Reuters)
Text size Aa Aa

(Reuters) – A surge in the Frankfurt stock market as German and Swiss investors returned from a one-day holiday drove European shares higher on Tuesday as investors eyed Washington closely for further bursts of protectionist rhetoric.

Optimism over President Donald Trump’s decision late on Friday to hold off on imposing import tariffs on Mexico has lifted sentiment this week, but there were new signs that the administration will make more threats to further its agenda in talks with major trading partners.

Secretary of State Mike Pompeo warned on Monday that the United States could still slap tariffs on Mexico if not enough progress was made on its commitment to stem illegal immigration.

Europe’s pan-regional STOXX 600 index rose 0.43% by 0714 GMT, with Frankfurt’s DAX outperforming.

Car industry shares rose 1.6% with German auto stocks BMW, Daimler and Volkswagen AS, lifting the tariff sensitive sector.

Madrid’s bank-heavy IBEX was the only laggard, after Morgan Stanley lowered its estimates for bank earnings in Spain to an average 4% in 2020 and 6.5% in 2021, factoring in a flatter yield curve as a result of the European Central Bank’s swing towards taking new steps to reduce market interest rates.

Among stocks, Hugo Boss rose 3.7% after shares of the German fashion house were upgraded to “equal-weight” from “underweight” by Morgan Stanley for the luxury retailer’s strategic plan to reposition the brand under two labels.

Ted Baker tumbled 26% after the fashion retailer warned on annual profit after an “extremely difficult” start to 2019.

(Reporting by Amy Caren Daniel and Agamoni Ghosh in Bengaluru; editing by Patrick Graham)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.