European stocks finished higher Thursday, with broad-based gains indicating a pickup in risk appetite after two sessions of losses that were in part spurred by fears of a global trade war.
How markets are moving
The Stoxx Europe 600 index SXXP, +0.52% rose 0.5% to close at 376.88. On Wednesday, the index fell 0.2%.
Germany’s DAX 30 DAX, +0.88% jumped 0.9% to end at 12,345.56, and France’s CAC 40 index PX1, +0.65% tacked on 0.7% to finish at 5,267.26. The U.K.’s FTSE 100 index UKX, +0.10% rose 0.1% to close at 7,139.76.
The euro EURUSD, +0.0325% bought $1.2314, down from $1.2369 late Wednesday in New York.
What’s driving markets
The tech FX8, +0.80% and insurance groups SXIP, +1.58% were among the strongest performers after two straight losing sessions for regional shares. European stocks had been on course to finish higher on Wednesday, but turned around alongside a selloff in U.S. stocks SPX, -0.08% DJIA, +0.47% , which appeared hit by the White House saying it will seek to trim the U.S.’s trade deficit with China by $100 billion.
Trade-war fears have been putting pressure on global markets in recent sessions as U.S. President Donald Trump ordered tariffs on steel and aluminum imports.
What strategists are saying
“Investors are in bargain-hunting mode. The strong finish in Asia overnight has encouraged dealers to buy back into the market. That being said, there still is political and economic uncertainty surrounding the U.S. For now, investors are viewing no news as good news,” said David Madden, market analyst at CMC Markets, in a note.
Stocks in focus
H&M Hennes & Mauritz AB HMB, -0.04% slid 3.3% after the Swedish fast-fashion retailer posted lower-than-expected sales in the first quarter.
Assicurazioni Generali SpA G, +2.51% rose 2.5% after the Italian insurer said it would raise its dividend for 2017 as net profit increased slightly and operating profit reached a record high during the year.
Shares of Spirax-Sarco Engineering PLC SPX, +6.01% bulked up 6% as the engineering company said profit increased 12% in 2017 and declared a last dividend of the year at 62 pence, up 16% from the year-earlier period.
Unilever PLC’s London-listed shares ULVR, -1.69% UNA, -1.00% gave up 1.7% after the Anglo-Dutch consumer-goods heavyweight said it would consolidate its dual headquarters in Rotterdam rather than in London. The decision was made despite last-minute lobbying by the U.K. government..
Tesco shares TSCO, +1.76% climbed 1.8% after the supermarket operator was upgraded to overweight at J.P. Morgan, according to Dow Jones Newswires.
