Modupe Gbadeyanka
By Investors Hub
European stocks have moved mostly higher on Friday, extending gains from the previous session as Giuseppe Conte returned as Prime Minister to form a new government in Italy and new signs of U.S.-China trade talks emerged. Investors also cheered media reports suggesting that Germany is seeking to cap its corporate tax burden at 25 percent.
While the German DAX Index has jumped by 1.2 percent, the French CAC 40 Index is up by 0.9 percent and the U.K.?s FTSE 100 Index is up by 0.7 percent.
Swiss drugmaker Novartis has advanced after announcing positive sturdy results for its prospective multiple sclerosis drug ofatumumab.
Banks Commerzbank, Credit Agricole and Societe Generale have also risen after U.S. Treasury Secretary Steven Mnuchin said issuing ultra-long U.S. bonds is “under very serious consideration” in a bid to steepen the yield curve.
Tariff-sensitive automakers BMW, Daimler, Volkswagen, Renault and Peugeot have climbed on hopes that new talks between the United States and China in September can lead to progress.
German real estate companies have also advanced on buzz that a rent freeze in Berlin could be watered down. Builders merchant and DIY group Grafton has also surged higher after it posted an uptick in half-yearly profits.
On the other hand, footwear retailer Shoe Zone has slumped to a record low after a warning that its annual results would be below expectations.
In economic news, German retail sales declined at the fastest pace seen so far this year in July, signaling weak household spending at the start of the third quarter.
Retail turnover decreased a faster-than-expected 2.2 percent month-on-month, reversing a 3 percent rise in June, official data showed.
However, on a yearly basis, retail sales rebounded 4.4 percent after falling 1.6 percent in June. This was the fastest increase in three months.
An indicator reflecting the current economic situation in the euro area fell in August after rising in the previous month, survey data from the Bank of Italy and the Centre for Economic Policy Research showed. The Eurocoin indicator dropped to 0.18 from 0.21 in July. In June, the reading was 0.14.
U.K. house prices increased 0.6 percent year-on-year in August, following a 0.3 percent rise in July, data from Nationwide Building Society showed.
