European stocks moved higher Monday as investors monitored the ongoing China-U.S. trade talks.
The pan-European Stoxx 600 was up by 0.5 percent with every sector in the black. Autos and Basic Resources were the top-leading sectors, higher by nearly 1 percent, as trade talks between the U.S. and China take center stage. Both sectors are highly influenced by developments in global trade.
U.S. President Donald Trump announced a postponement of a deadline – March 1 – which would have triggered fresh trade tariffs on China. Both countries continue working to reach an agreement over trade. If a deal is reached, Trump said there will be a summit with Chinese President Xi.
In individual stock news, Persimmon fell to the bottom of the index, down by more than 6 percent. This is after the U.K. government reviewed the house builder participation in the Help to Buy Scheme, a government program aimed at supporting purchases of first homes, and said that it was “increasingly concerned” by the firm’s practices.
There was also some momentum in Italian stocks during early deals. Credit rating agency Fitch affirmed its BBB rating to the southern country.
In other corporate news, Roche is set to buy the gene therapy specialist Spark in a $4.3 billion deal.
Vivendi, Telecom Italia’s main shareholder said that it would support a merger with rival Open Fiber, under the right conditions, Reuters reported.
Meanwhile, political uncertainty over Brexit remains. Prime Minister Theresa May has delayed returning to parliament for another key vote on her Brexit deal. MPs are now expected to have another meaningful vote by March 12. The U.K.’s departure from the European Union is currently scheduled for March 29.
Elsewhere, European leaders travelled to Egypt to participate in the first summit with Arab League countries. The focus of the meeting is on migration.
On the data front, U.K. finance mortgage approvals are set to be published at 9.30 a.m.
Source: CNBC
