European Equities Extend Gains as Trade War Fears Ease
European stocks rose Tuesday, with London hitting a record peak on upbeat global sentiment and easing Italian political worries, dealers said.
London's FTSE 100 benchmark index briefly scaled a record pinnacle before paring gains.
In early afternoon eurozone trade, Frankfurt won 0.4 percent and Paris added just 0.1 percent.
"The FTSE 100 has hit another record high as global sentiment continues to rise," said CMC Markets analyst David Madden.
"China has agreed to cut tariffs on U.S. imported cars from 25 percent to 15 percent, and this is seen as a sign of improved trading relations.
"Thanks to the latest updates from Beijing, investors are even less fearful of a trade war between the U.S. and China."
Milan stocks jumped 0.5 percent as investors awaited fresh news on the formation of a new Italian government.
"The calming of tensions over Italy, or at least the lack of news, has allowed European equities to hold steady, but the situation will likely act to cap near-term bullish activity in eurozone stocks," analyst Chris Beauchamp at trading firm IG said.
World oil prices meanwhile pushed higher after Washington flagged harsh sanctions on key producers Iran and Venezuela.
Stocks had fizzed higher on Monday after the United States and China effectively called a truce in what had been a spiraling trade dispute.
U.S. Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He said they had agreed to pull back from the brink of a potentially damaging trade war.
However, skepticism over the news crept across Asian trading floors on Tuesday.
Also tempering optimism are worries about higher U.S. interest rates and geopolitical issues.
"Markets are going through a bumpy ride," Bank of Singapore Investment Strategist James Cheo told Bloomberg Television.
"This trade truce is still in the early days. It's really a ceasefire, it's not a peace treaty as yet. The implementation details are still unclear. There is still some caution among Asian investors."
- Key figures around 1130 GMT -
London - FTSE 100: UP 0.2 percent at 7,876.06 points
Paris - CAC 40: UP 0.1 percent at 5,642.87
Frankfurt - DAX 30: UP 0.4 percent at 13,131.78
Milan - FTSE MIB: UP 0.5 percent at 23,201.21
EURO STOXX 50: UP 0.3 percent at 3,584.31
Tokyo - Nikkei 225: DOWN 0.2 percent at 22.960.32 (close)
Shanghai - Composite: FLAT at 3,214.35 (close)
Hong Kong - Hang Seng: Closed for a public holiday
New York - Dow: UP 1.2 percent at 25,013.36 (close)
Euro/dollar: UP at $1.1806 from $1.1791 at 2100 GMT
Pound/dollar: UP at $1.3463 from $1.3427
Dollar/yen: DOWN at 111 yen from 111.05 yen
Oil - Brent North Sea: UP 40 cents at $79.62 per barrel
Oil - West Texas Intermediate: UP 28 cents at $72.52
Source: Agence France Presse
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