European Equities Rebound as Investors Take Trade Concerns in Stride

May 25, 2018
European Equities Rebound as Investors Take Trade Concerns in Stride

By Investors Hub

European stocks have rebounded from losses in the previous session on Friday as investors took trade concerns and higher Italian bond yields in stride.

While the German DAX Index has climbed by 0.7 percent, the French CAC 40 Index and the U.K.?s FTSE 100 Index are up by 0.2 percent and 0.1 percent, respectively.

The euro slipped and was on track for its sixth consecutive week of losses. The pound also traded lower amid growing Brexit uncertainty and after the release of first quarter GDP data.

The U.K. economy expanded at a weaker pace, as estimated, in the first quarter, the second estimate from the Office for National Statistics showed.

GDP grew 0.1 percent sequentially, slower than the 0.4 percent expansion registered in the fourth quarter. The rate came in line with the estimate published on April 27th.

Elsewhere, German business confidence remained stable in May, survey data from Ifo Institute revealed. The business climate index came in at 102.2 in May, unchanged from April. The index was estimated at 102.

Deutsche Bank shares advanced 0.7 percent in Frankfurt. Chief Executive Officer Christian Sewing said the bank is on the right track to achieve the planned cost reductions and revenue growth of 900 million euros per year by 2022 at the latest.

Automakers have rebounded from losses in the previous session after Trump’s threat to impose tariffs on auto imports drew strong criticism from U.S. business groups.

Pharmaceutical, chemical and life science giant Bayer has climbed after confirming its currency-adjusted outlook for fiscal 2018.

French wine and spirits company Pernod Ricard has also advanced after it announced a deal to produce and distribute whisky in Myanmar.

British gambling firm GVC Holdings has jumped after forecasting higher cost synergies from its acquisition of Ladbrokes Coral.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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