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Home / Business / The German DAX jumps 1.5% to EU-US. Trade peace, leading European stocks higher

The German DAX jumps 1.5% to EU-US. Trade peace, leading European stocks higher



German stocks rose most sharply on Thursday in six weeks, European stock markets were higher, and automakers' shares found relief after the EU's top official with US President Donald Trump signed a ceasefire.

Profits were made before the European Central Bank announced its last monetary policy decision after policymakers announced in June that they would cut their asset purchases in October.

What Markets Do

Germany's DAX 30 index

DAX, + 1.27%

jumped 1

.5% to 12,767.28, making it to its best session since June 14, as shown by FactSet data.

The rise in German equities has pushed the Stoxx Europe 600 Index higher

SXXP, + 0.44%

up 0.5% to 389.08, led by consumer goods and technology groups. But the oil and gas, materials and healthcare sectors lost ground. The pan-European index fell 0.3% on Wednesday.

France's CAC 40 index

PX1, + 0.45%

increased by 0.7% to 5.463.96 and Spain's IBEX 35

IBEX, + 0.59%

increased by 0.4% to 9,746.80. But the UK's FTSE 100 Index

UKX, -0.04%

fell 0.1% to 7,653.74.

Check out: European luxury stocks threaten a 30 percent decline in a total trade war, says UBS

The Euro

EURUSD, -0.1535%

traded at 1.1729 USD, unchanged since late Wednesday in New York. The single currency was also unchanged against the pound

EURGBP, -0.0900%

at 0,8891 pence.

What drives the market?

The shares of car manufacturers were among the top performers, after European Commission President Jean-Claude Juncker and Trump, after European trading on Wednesday had decided to put "zero-duties" and "zero" subsidies for non-automatic industrial goods. Trump had threatened to impose tariffs on European cars, but said he would hold back any retaliation while the discussions continued.

Trump, who met Juncker at the White House, also said that the EU would buy more US soybeans and that he would work on resolving the tariffs on European steel and aluminum Trump, who recently described the EU as the "enemy" of the US, tweeted a message of "love" to the bloc on Wednesday:

Read more: Trump hails "big day" for free trade as he adjuts provisional pact with EU chief

And see: text of the joint US-EU opinion on Ha

The "Donald Trump versus Jean-Claude Juncker confrontation … went better than anyone would have expected," Connor Campbell, financial analyst at Spreadex, said in a note. "While there is not much substance to what has been announced, with the fact that the relationship did not get worse than the plans to negotiate, it was enough to lift the spirits of the previously dreadful markets."

Do Not Miss: The Trump Juncker Agreement Is Meaningful Even When Details Are Missing

The President of the European Central Bank, Mario Draghi, is likely to be asked about the EU-US An armistice if it holds a press conference following the ECB's monetary policy decision. The ECB is unlikely to make waves on Thursday after declaring in June that it will cut back asset purchases by the end of this year and that rate hikes will not occur until the end of 2019.

The statement by the ECB is at 12:45 London time or 7:45 am Eastern time, followed by Draghi's press conference at 13:30 London time or 8:30 East.

Read: Euro traders looking at US GDP figures as a possible driver on Friday

Stock movers

The Stoxx Europe 600 Automobiles & Parts Index

SXAP, + 2.07%

climbed 1.7% at Fiat Chrysler Automobiles NV

FCA, + 4.66%

increases by 4.2%, Volkswagen AG

VOW3, + 2.71%

by 3.2% and BMW AG

BMW, + 2.88%

gains 2.6%. Renault SA

RNO, + 1.91%

gained 1.6% and Daimler AG

DAI, + 2.20%

increased 1%.

In the second quarter, Daimler posted a significant decline in profits to 1.73 billion euros (2.02 billion US dollars), as tariffs in connection with the trade dispute with China damaged Mercedes-Benz Cars and the company in Germany was heavily burdened ,

Airbus SE

AIR, + 4.79%

rose 4.1% after the aircraft maker said second-quarter earnings nearly doubled to 1.2 billion euros ($ 1.4 billion) but the company could cut its full-year forecast.

Cobham PLC

COB, -10.33%

fell 9.8% after British aerospace engineer Boeing Co. said.

BA, -0.66%

withdraws the payment via the KC-46 aircraft refueling program. But Cobham has withdrawn the underlying earnings forecast for 2018.


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