European shares hit 6-week high on US trade deal optimism, earnings boost

Business Recorder

2 days ago

European shares rose to a six-week high on Thursday, buoyed by optimism over a potential EU-US trade agreement and upbeat corporate results, as investors awaited the European Central Bank's rate decision later in the day.
The pan-European STOXX 600 index gained 0.6% to its highest since June 11 by 0715 GMT.
Most regional bourses were in the green, with Germany's blue-chip DAX adding 0.9% and UK's FTSE 100 advancing 0.6% to an all-time peak, marking a sixth straight session of gains.
The anticipated trade deal would lead to a broad 15% tariff on imports from the European Union into the U.S., avoiding a harsher 30% levy slated to be implemented from August 1, two EU diplomats said on Wednesday.
A 2.3% rise in banks led gains among European sectors, helped by Deutsche Bank and BNP Paribas.
Deutsche Bank climbed 4.4% after the German lender returned to a better-than-expected profit in the second quarter, while French bank BNP Paribas gained 1.9% after reporting a smaller-than-expected decline in second-quarter profit.
Roche gained 2% to give a major boost to the benchmark STOXX 600 after the Swiss drugmaker reported better-than-expected first-half operating profit.
On the flip side, Nestle dropped 4.5% after the Swiss consumer major announced a strategic review of its vitamins business and posted first-half results.
The European Central Bank is widely expected to keep rates steady at 2% after seven consecutive cuts.