European Stocks Hit Over Four-Year Highs Thursday

By Investors Hub

European stocks have gained ground on Thursday to hit over four-year highs after China and the United States reportedly agreed to cancel tariffs on each other’s goods for both sides to reach a “phase one” trade deal.

The two sides have agreed in the past two weeks to cancel tariffs imposed during their months-long trade war in different phases, the Chinese commerce ministry said.

The proportion of tariffs cancelled must be the same, and how many tariffs should be cancelled can be negotiated, Gao Feng, spokesman at the commerce ministry, told reporters.

While the German DAX Index has climbed by 0.8 percent, the U.K.?s FTSE 100 Index is up by 0.5 percent and the French CAC 40 Index is up by 0.2 percent.

French food services and facilities management company Sodexo has moved sharply higher after reporting a rise in full-year revenue and profits.

J Sainsbury has also moved to the upside. After reporting a slump in pre-tax profits, the supermarket chain said it had achieved “positive momentum in grocery market share” in highly competitive times.

Homebuilder Persimmon has also rallied after the company said that trading over the summer weeks was in line with its expectations, with the Group seeing the usual pick-up in customer activity while moving into the autumn season.

Deutsche Lufthansa has also soared. The airline confirmed its full-year guidance after posting a 4 percent rise in third-quarter net result.

On other hand, Rolls Royce Holdings has declined. The luxury automobile maker said that despite improved trading since the first half of the year, it now expects full year operating profit and free cash flow outcome towards the lower end of its guidance ranges.

Telecom giant Deutsche Telekom has also come under pressure. The company cut its dividend after reporting a rise in third-quarter revenue and earnings.

In economic news, investors shrugged off weak data from Destatis showing that German industrial production fell 0.6 percent month-on-month in September, reversing a 0.4 percent rise in August. Economists had forecast a moderate drop of 0.3 percent.

U.K. house prices dropped at a slower pace in October, data from the Lloyds Bank subsidiary Halifax and IHS Markit showed. House prices fell 0.1 percent in October from the previous month, when prices were down 0.4 percent.