Global market: China’s factory data lifts European shares

0
84

European shares rose on Friday due to a surprise bounce in China’s manufacturing activity which overshadowed conflicting tones surrounding a possible trade deal between the United States and China.

The pan-European STOXX 600 index rose 0.3% at 0915 GMT, with China-exposed German shares .GDAXI up 0.4%, while mining stocks .SXPP led gains among sub-sectors following upbeat data from the world’s top metals consumer.

China’s factory activity unexpectedly expanded at the fastest pace in more than two years in October as new export orders rose and plants ramped up production, a private business survey showed on Friday.

“The numbers are good given it came ahead of expectations and expansion is always a welcome,” said David Madden, an analyst at CMC markets in London.

The latest data is in contrast to an official survey published on Thursday, which showed China’s factory activity shrank for the sixth straight month in October.

“The Caixin numbers do seem to be more impartial than official numbers from Beijing, so it is a welcome change, although U.S.-China trade is going to be the main focus for now,” the analyst added.

Conflicting signals on trade gave investors reason for caution after a Bloomberg report said Chinese officials have doubts about whether it is possible to reach a comprehensive long-term trade deal with Washington and U.S. President Donald Trump.

But Trump later said the two countries would soon announce a site where a “Phase One” trade deal will be signed after Chile canceled a planned summit set for mid-November that was to be the venue for a signing.

Peace PIAK