Trade talks spur timid relief bounce in European shares
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LONDON, Aug 16 (Reuters) – European shares bounced back on Thursday after Beijing said it would hold trade talks with the U.S. in Washington later this month, spurring a recovery in investors’ risk appetite on hopes of a trade war thaw.
Europe’s STOXX 600 rose 0.2 percent, clawing back some of the previous session’s losses which had taken it to a six-week low as emerging markets entered bear territory.
Mining stocks were the top gainers, rising 1.2 percent after suffering their worst day since the Brexit vote on Wednesday when metals prices sank.
Results drove some sharp moves with copper miner Kaz Minerals and electronic payments firm Wirecard leading the pack.
Kazakhstan-focused miner Kaz Minerals rose 7.1 percent after announcing its first dividend since 2012 and reporting stronger first half earnings.
Wirecard shares rose 5.2 percent after the electronic payments firm raised its 2018 profits guidance, making it more likely it will replace Commerzbank in the next reshuffle of the DAX index.
Earnings disappointments weighed on others.
Swedish retailer ICA dropped 4.8 percent after reporting second-quarter earnings fell more than expected.
Shares in Dutch marine and engineering company Boskalis fell 5 percent after it reported first-half earnings that missed estimates due to loss-making transport activities at its offshore energy division.
Kingfisher shares fell 3.4 percent after the home improvement retailer reported weaker performance at its French brand Castorama, though it said sales picked up thanks to a Europe-wide heatwave boosting demand.
Shares in Italian motorway operator Atlantia failed to open after pre-market indications saw them falling 49 percent.
Atlantia said its shareholders and bondholders could be hurt after Italy’s government said it plans to strip the group’s Autostrade unit of its motorway concession and seek heavy fines following the deadly collapse of a motorway bridge in Genoa.
(Reporting by Helen Reid, editing by Kit Rees)
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