Europe midday: Tech issues lead bounce in stock markets
By Alexander Bueso
Date: Tuesday 21 May 2019
(Sharecast News) - Stocks on the Continent are bouncing back from the the previous day's thrashing after the US administration decided overnight to ease its restrictions on Chinese tech giant Huawei for three months.
Reacting to the news, CMC Markets UK's Michael Hewson said: "While it's a small measure it does perhaps symbolise that there might be a reverse gear from the current slide to what could well turn into a full blown trade war between the US and China, that could drag the whole global economy down in its wake."
Against that backdrop, as of 1351 BST, the benchmark Stoxx 600 was adding 0.6% to 379.83, alongside a gain of 1.01% to 12,162.35 for the German Dax and of 0.74% to 20,691.19 on the FTSE Mibtel.
Technology issues were pacing advancers, with the Stoxx 600's sector gauge rising by 1.88% to 476.64.
In parallel, the pound was coming off its worst levels of the session, adding 0.14% to 1.1410, ahead of a speech by the British Prime Minister to lay out her offer to Labour regarding changes to her withdrawal proposal.
According to some market observers that might include some form of customs union with the European Union post Brexit and perhaps also a second vote in some shape or form.
Nevertheless, in the background, analysts at JP Morgan reportedly raised their estimate of the probability of a 'no deal' Brexit from 15% to 25%.
Still ahead for later in the day, at 1500 BST the European Commission was scheduled to release a preliminary reading for its Eurozone consumer confidence index covering the month of May.
Email this article to a friend
or share it with one of these popular networks:
You are here: news
10 Lower Thames St,
London EC3R 6EN