European stocks rose yesterday, with London hitting a new high on upbeat global sentiment and easing Italian political worries, dealers said.
At the end of the session, London’s FTSE 100 benchmark index was 0.2% higher at 7,877.45 points, Frankfurt added 0.7% at 13,169.92 points and Paris inched up 0.1% at 5,640.10 points.
The EURO STOXX 50, meanwhile, closed 0.4% up at 3,587.25 points.
On the other side of the Atlantic, Wall Street opened higher for a second straight day but soon fell back as investors took profit.
“FTSE is still trending upwards, supported by the easing of US-China trade tensions, as well as a weaker dollar supporting metals and mining stocks,” said Accendo Markets analyst, Artjom Hatsaturjants.
Milan stocks ended the session 0.5% higher at 23,129.24 points, as investors awaited fresh news on the formation of a new Italian government.
“The calming of tensions over Italy, or at least the lack of news, has allowed European equities to hold steady, but the situation will likely act to cap near-term bullish activity in eurozone stocks,” analyst Chris Beauchamp at trading firm IG said.
World oil prices, meanwhile, pushed higher after Washington flagged harsh sanctions on key producers Iran and Venezuela.
Stocks rose on Monday after the United States and China effectively called a truce in what had been a spiralling trade dispute.
US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He said they had agreed to pull back from the brink of a potentially damaging trade war.
However, scepticism over the news crept across Asian trading floors yesterday.
Also tempering optimism are worries about higher US interest rates and geopolitical issues.
“Markets are going through a bumpy ride,” Bank of Singapore Investment Strategist James Cheo told Bloomberg Television.
“This trade truce is still in the early days. It’s really a ceasefire, it’s not a peace treaty as yet. The implementation details are still unclear.There is still some caution among Asian investors.”
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