Thursday , September 24 2020

European stocks inch higher ahead of Trump's keynote speech on China


European stocks rose higher on Tuesday ahead of a critical speech on China's trade relations by President Donald Trump, backed by generally well-earned earnings.

Stoxx Europe 600

SXXP, + 0.25%,

which ended Monday at just 2% below the record close, rose 0.12% to 405.81.

German DAX

DAX, + 0.63%

rose 0.29% to 13236.76, the French CAC 40

PX1, + 0.29%

gained 0.15% to 5902.52 and the US FTSE 100

UKX, + 0.33%

increased by 0.28% to 7349.30.

Trump at 12 o'clock. East is due to give a speech before the New York Economic Club. "Regardless of the tone of the remarks, the effect on markets is likely to be short-term. We're just one tweet away from changing policy and the next trade communication can change market assumptions, "said Paul Donovan, chief economist at UBS Global Wealth Management.

Vodafone Group

VOD, + 2.28%

VOD, -0.68%

grew by 1% as the US-based mobile operator lifted its guidance for adjusted earnings for fiscal 2020, which means 2% to 3% organic growth. Its Organic Adjusted Ebita grew by 1.4% in the first half to a 0.3% increase in service revenue, helped by profits in South Africa, Spain and Italy.

Infusion technologies

IFX, + 6.86%

rose to 5% as the German chip maker reported fourth-quarter revenue and operating profit from the forecast, helped by its unit that manufactures smart phone chips. Infneon's outlook implies strong sales growth in the second half of its fiscal year, according to Equimia analyst Gianmarco Bonacini, an Italian broker.

B&M European Retail Value

BME, -5.19%

fell 7.3%. Discounted retail sales fell worse than expected by a 2.8% drop in pre-adjusted profits, as the company said it "continues to disappoint financial performance in Germany" and is slowing sales at the same store in its US stores.

Electrical components

ECM, -11.59%

shares fell 13.6% as the distributor of industrial and electronic products said the second half began with "modest growth" with "continued softness in electronics".

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