Dipo Olowookere
By Investors Hub
European stocks have risen on Tuesday as investors express hopes for a trade deal between the U.S. and China and the Italian government approved a decree aimed at shoring up troubled lender Banca Carige.
While the French CAC 40 Index has jumped by 1.6 percent, the German DAX Index and the U.K.?s FTSE 100 Index are up by 1.2 percent and 1.1 percent, respectively.
Shares of Carrefour have rallied in Paris after Bank of America Merrill Lynch upgraded its rating on the company?s stock to buy.
Rolls- Royce Holdings has also jumped in London after Britain’s Serious Fraud Office dropped its investigation of some individuals associated with the company.
Meanwhile, shares of Sika AG have fallen following reports the specialty chemicals company will buy French rival Parex for $2.55 billion.
WM Morrison Supermarkets has also fallen after a disappointing trading update as it reported a sharp slowdown in sales growth at its stores over Christmas.
On the data front, Eurozone economic sentiment decreased more than expected in December to its lowest level since the start of 2017, survey data from the European Commission showed.
The economic sentiment index dropped to 107.3 from 109.5 in November. Economists had predicted a reading of 108.2.
France’s merchandise trade deficit widened sharply in November and was worse than economists’ forecast, preliminary figures from the French Customs showed.
The visible trade deficit rose to 5.1 billion euros from 4.1 billion euros in October. Economists had expected a shortfall of 4.9 billion euros for November. A year ago, the deficit was 5.96 billion euros.
German industrial production decreased for a third straight month in November, defying expectations for an increase, amid a sharp drop in consumer goods and energy output, preliminary data from the Federal Statistical Office revealed.
Industrial production fell a calendar and seasonally adjusted 1.9 percent from October, when it decreased 0.8 percent. Economists had expected a 0.3 percent increase.
The British pound was little changed as a report showed British house prices unexpectedly surged in December and U.K. Brexit Secretary Stephen Barclay denied a report in the Telegraph that U.K. officials are “putting out feelers” in Brussels about an extension to the Article 50 notice.
