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Sept. 11, 2019, 5:16 a.m. EDT

Europe stocks higher on China move to relax tariffs; LSE rallies on bid

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By Steve Goldstein, MarketWatch


Getty Images
Shares in the London Stock Exchange rallied.

Europe stocks on Wednesday advanced as a signal of easing tensions between the U.S. and China helped bid equities higher ahead of a critical central bank decision.

The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP +0.46%  rose 0.66% to 388.98.

Banks /zigman2/quotes/210599387/delayed XX:SX7E +2.14%  and insurers advanced, while more defensive names like Veolia /zigman2/quotes/200641726/delayed FR:VIE -0.43%  , the French waste and waste management company, and Iberdrola /zigman2/quotes/202060935/delayed ES:IBE -0.61%  , the Spanish utility, lost ground.

The German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.77%  rose 0.8% to 12366.47, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.21%   rose 0.42% to 5616.65 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.16%  jumped 1.02% to 7341.94.

U.S. stock futures /zigman2/quotes/209948968/delayed ES00 +0.28%  rose after a 73-point advance for the Dow industrials /zigman2/quotes/210598065/realtime DJIA -0.95%  on Tuesday.

China on Wednesday announced plans to exempt 16 categories of products from the first round of tariffs. Talks between the U.S. and China are scheduled to resume at a high level in October.

The European Central Bank on Thursday is meeting with expectations of a package of easing measures to be announced.

“Although this week’s ECB meeting is shaping up as one of the most unpredictable in recent years, what’s in question is not whether policy will be eased but the precise combination of measures which will find support to get through the Governing Council,” said Marchel Alexandrovich of Jefferies. “The bar for further ECB easing has been lowered substantially in recent months and it would be a case of severe miscommunication if at this point, even in the face of small downward forecasts changes, the ECB failed to amend policy.”

Of companies in the spotlight, the London Stock Exchange /zigman2/quotes/206625606/delayed UK:LSE -0.23%   shot up 9% to 7448 pence after the Hong Kong Exchanges & Clearing /zigman2/quotes/200234512/delayed HK:388 +1.85%  launched a surprise £29.6 billion, or 8,361 pence a share bid. The Hong Kong exchange already owns The London Metal Exchange.

The LSE didn’t have an immediate comment on the bid.

Inditex /zigman2/quotes/203681809/delayed ES:ITX +0.04%   fell 2% as the Zara and Massimo Dutti owner reported a weaker-than-forecast profit alongside first-half same-store sales of 5% and a forecast of full-year same-store sales between 4% and 6%.

“The main issue will be the focus on why gross margin has been weaker with no large FX moves and a strong like-for-like sales and why there is not more leverage on a solid LFL performance. This may again bring into question whether Inditex can grow both LFL and gross margin at the same time,” said analysts at Citi.

/zigman2/quotes/210599654/delayed
XX : STOXX
393.66
+1.82 +0.46%
Volume: 0.00
Oct. 21, 2019 1:54p
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/zigman2/quotes/210599387/delayed
XX : STOXX
93.36
+1.96 +2.14%
Volume: 0.00
Oct. 21, 2019 1:54p
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/zigman2/quotes/200641726/delayed
FR : France: Euronext Paris
22.98
-0.10 -0.43%
Volume: 367,660
Oct. 21, 2019 1:51p
P/E Ratio
24.33
Dividend Yield
4.00%
Market Cap
€12.77 billion
Rev. per Employee
€151,090
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/zigman2/quotes/202060935/delayed
ES : Spain: Madrid
9.07
-0.06 -0.61%
Volume: 3.57M
Oct. 21, 2019 1:53p
P/E Ratio
17.46
Dividend Yield
N/A
Market Cap
€57.40 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
12,730.97
+97.37 +0.77%
Volume: 31,941
Oct. 21, 2019 1:54p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,647.94
+11.69 +0.21%
Volume: 26,706
Oct. 21, 2019 1:54p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,161.75
+11.18 +0.16%
Volume: 296,400
Oct. 21, 2019 12:54p
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/zigman2/quotes/209948968/delayed
US : U.S.: CME
$ 2,996.50
+8.30 +0.28%
Volume: 121,366
Oct. 21, 2019 6:59a
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
26,770.20
-255.68 -0.95%
Volume: 293.61M
Oct. 18, 2019 5:08p
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/zigman2/quotes/206625606/delayed
UK : U.K.: London
7,086.00 p
-16.00 -0.23%
Volume: 135,818
Oct. 21, 2019 12:52p
P/E Ratio
52.19
Dividend Yield
0.89%
Market Cap
£24.80 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/200234512/delayed
HK : Hong Kong
HK$ 242.60
+4.40 +1.85%
Volume: 7.35M
Oct. 21, 2019 4:08p
P/E Ratio
32.05
Dividend Yield
2.80%
Market Cap
HK$299.68 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203681809/delayed
ES : Spain: Madrid
28.46
+0.01 +0.04%
Volume: 11.10M
Oct. 21, 2019 1:51p
P/E Ratio
24.73
Dividend Yield
2.50%
Market Cap
€88.61 billion
Rev. per Employee
€149,497
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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