By Emily Horton
European indexes were positive on Tuesday, with auto-part companies gaining after upbeat results from Michelin and investors optimistic about a potential trade deal and hopes the U.S. can avoid another damaging government shutdown.
How are markets performing?
The Stoxx Europe 600 /zigman2/quotes/210599654/delayed XX:SXXP -0.10% rose 0.4% to 362.66 in Tuesday, after the index finished up 0.9% on Monday.
Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -1.09% led the regions gainers, adding 1.1% to 11,137.18. As well, Italy’s FTSE MIB climbed by 1.1%, while France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.69% rose by 0.9% to 5,060.35. The Spanish IBEX 35 /zigman2/quotes/210597995/delayed XX:IBEX -0.23% index rose by 0.7% to 9000.90.
The FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.34% was flat at 7,132.45.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.0086% fell slightly to $1.1291 on Tuesday, from $1.1278 late Monday in New York, while the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.0157% dipped to $1.2869 from $1.1278.
What’s driving the markets?
In the U.S., Democratic and Republican lawmakers said late Monday that a deal had been reached to avert another damaging government shutdown, though U.S. President Donald Trump will still need to put his final stamp of approval on the border-wall funding agreement.
Investors also remain glued to ongoing trade talks in China, entering a second day. Trump senior adviser Kellyanne Conway told Fox News & Friends that Trump and China President Xi Jinping seem nearer a trade deal . Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are due to arrive Thursday for more high-level discussions as a March 2 agreement deadline between the two countries looms.
In the U.K., Prime Minister Theresa May will plead with parliament to give her two more weeks to improve her Brexit deal. The PM is expected to ask U.K. politicians to not to hinder her efforts to win concessions from Brussels while talks are ongoing.
What shares were active?
Shares of Compagnie Generale des Etablissements Michelin /zigman2/quotes/203570581/delayed FR:ML -0.53% climbed 11% Tuesday, boosting rivals as investors cheered the French tire maker’s results and outlook for the year. Continental AG /zigman2/quotes/202192628/delayed DE:CON -0.11% and Pirelli & C. SpA /zigman2/quotes/207723671/delayed IT:PIRC -2.80% shares rose 4% and nearly 5% higher, respectively.
Gucci owner Kering /zigman2/quotes/204653408/delayed FR:KER -0.63% said its net profit had doubled in 2018 and raised its dividend for the year on Tuesday, but shares dropped by 2%. ING analysts said in a note to clients that the upbeat results had largely been priced into the stock and the company still had “little performance potential.”
But Kering’s results reassured other luxury brands that the Chinese still have an appetite for luxury goods despite the country’s economic slowdown. Moet Hennessy Louis Vuitton SE /zigman2/quotes/201350549/delayed FR:MC -0.40% gained 2% and Burberry Group PLC /zigman2/quotes/205386705/delayed UK:BRBY +0.75% added 0.7%.