Chloe Taylor, Elliot Smith
European Markets: FTSE, GDAXI, FCHI, IBEX
Although Knot’s comments briefly dented sentiment, the pan-European Stoxx 600 pared losses to end the session more than 1% higher, with all sectors and major bourses in positive territory.
China’s ‘calm attitude’
Tensions between the world’s two largest economies escalated last week with each country announcing increases to tariffs on one another’s goods, but China’s Ministry of Commerce spokesman Gao Feng said on Thursday that Beijing was “willing to negotiate and collaborate,” adding that Chinese and U.S. trade delegations have maintained “effective” communication.
Stocks on Wall Street also traded in positive territory on Thursday as investor sentiment was lifted by the comments from China.
Soft inflation data
Investors are monitoring political developments after news Wednesday that U.K. Prime Minister Boris Johnson will suspend Britain’s parliament for more than a month before the country’s departure from the European Union. This would potentially scupper efforts from opposition parties to block a chaotic no-deal exit if Johnson is unable to secure a new deal with the bloc before October 31.
Italian politics is also in focus as President Sergio Mattarella on Thursday handed a fresh mandate to Prime Minister Giuseppe Conte to form a government, comprising a coalition between the Five Star Movement (M5S) and the opposition Democratic Party (PD). Conte had resigned following a decision by the Lega party to pull out of its previous coalition with M5S.
Stocks on the move
At the other end of the Stoxx 600, French industrial giant Bouygues gained 6.75% after the firm reported a jump in profits and better-than-expected first-half results.
Luxembourg-based Eurofins Scientific jumped more than 5% after the biopharma testing firm reported better-than-expected first-half results and suffered only a mild loss from a recent cyberattack.