European shares are trading higher Thursday on optimism over global economic growth. Stocks were underpinned after U.S. President Donald Trump said that a Phase One trade deal with China will be signed on January 15, although he did not release any details of the expected signing ceremony.
Not only are traders excited about the signing of the trade deal, which was struck on December 15, but they are also enthusiastic about the possibility of finally seeing some of the details of the deal that have so far been sketchy. Although the markets have hit record highs since the deal was announced, some say the market reaction has actually been stunted by a lack of clarity over the full extent of the agreement.
In the U.K., the FTSE 100 Index is trading 7611.61, up 69.17 or +0.92%. Germany’s DAX Index is at 13369.33, up 120.32 or +0.91% and in France, the CAC is trading 6058.94, up 80.88 or +1.35%.
Corporate and Stocks News
Airbus has become the world’s largest airplane manufacturer for the first time since 2011, ousting Boeing from the top spot after beating forecasts on its 863 aircraft in 2019, Reuters reported on Wednesday citing airport and tracking sources.
German banks led the upward momentum on Thursday with Commerzbank climbing 5.9% while compatriot Deutsche Bank added 5.4%. Tullow Oil shares slid 6.6% after the British oil company announced the results of drilling at its Carapa-1 well, paring sharp early losses by the afternoon.
Shares Rise in Asia on Back of Strong Chinese Private Survey Data
Shares in China led gains among major markets in the Asia Pacific region as they surged on Thursday, after a private survey showed manufacturing activity in the country rising in December.
The Markit/Caixin Purchasing Managers’ Index (PMI) for manufacturing in the month of December came in 51.5, versus 51.8 in November. Still, that was below expectations by analysts in a Reuters poll of a reading of 51.7 for December.
That came after the official manufacturing PMI released Tuesday came in slightly above expectations.
South Korea Exports Fall Less Than Expected
Data released Wednesday showed the South Korea’s exports falling less than expected in December.
South Korea’s exports for that month declined 5.2% in December as compared to a year earlier, Reuters reported Wednesday, citing data from the country’s trade ministry. That was lower than median expectations of a 6.0% fall from a Reuters poll.
People’s Bank of China Makes Move
The People’s Bank of China also announced Wednesday on its website that it was going to lower the reserve requirement ratio for banks by 50 basis points with effect from Jan. 6.
This article was originally posted on FX Empire
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