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European shares rise on trade-fuelled optimism, London shines

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By Reuters
European shares rise on trade-fuelled optimism, London shines
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 25, 2019. REUTERS/Staff   -   Copyright  STAFF(Reuters)

(Reuters) – European shares rose on Friday, with London stocks outperforming due to a weaker pound, while hopes of a quick resolution to the U.S.-China trade war offset worries of slowing economic growth and rising political risks.

The pan-European STOXX 600 index <.STOXX> rose 0.5%, with export-heavy London’s FTSE 100 <.FTSE> up almost 1%, led by gains in oil majors and miners.

The United States and China are prepping for another round of high-level trade talks scheduled for Oct. 10 and 11 in Washington, aimed at resolving their near 15-month long trade dispute.

The European basic resources sector <.SXPP> jumped 1.4%, powered by a rise in shares of Norwegian aluminium company Norsk Hydro <NHY.OL>, which gained 1.9%, after a Brazilian court lifted its final production embargo on the company’s key plant.

However, shares of semiconductor companies Infineon <IFXGn.DE>, AMS <AMS.S> and ASM International <ASMI.AS> came under pressure after a profit warning from U.S. chipmaker Micron Technology Inc <MU.O>.

Tech stocks <.SX8P> edged 0.1% higher, posting some of the smallest gains among the major European sub-sectors.

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Bernard Orr)