EUROPE MARKETS: European Stocks Close Higher As Worries Over Trump Rally Recede

By Victor Reklaitis, MarketWatch

Investors still giving Trump 'the benefit of the doubt': analyst

European stocks finished higher Tuesday, as analysts said worries were abating over whether the Trump administration will be able to push through pro-growth reforms in the world's largest economy.

The Stoxx Europe 600 index rose 0.6% to end at 377.30, rallying after Monday's drop of 0.4% (http://www.marketwatch.com/story/banks-lead-european-stocks-lower-as-trump-rally-falters-2017-03-27).

The pan-European benchmark slid on Monday along with equities worldwide after a Republican overhaul of the U.S. health care system fizzled, sparking worries about President Donald Trump's other business-friendly plans.

"Markets are calmer today," said Hussein Sayed, FXTM's chief market strategist, in a note. American tax reform, infrastructure spending and deregulation now appear less likely, "but investors are still giving President Trump the benefit of the doubt," he said.

"However, if they see that these plans will face the same destiny as the health care act, markets will soon turn to aggressive selling," Sayed added.

National indexes:The U.K.'s FTSE 100 (http://www.marketwatch.com/story/uk-stocks-recover-slightly-from-slide-pound-resilient-before-brexit-trigger-2017-03-28) rose 0.7% to end at 7,343.42, helped by the pound falling ahead of a much-anticipated step in the U.K.'s withdrawal from the European Union. On Wednesday, Prime Minister Theresa May is expected to invoke Article 50 (http://www.marketwatch.com/story/uk-prime-minister-to-trigger-start-of-brexit-process-on-march-29-2017-03-20) to start the Brexit process.

Germany's DAX 30 index gained 1.3% to finish at 12,149.42, while France's CAC 40 index added 0.6% to close at 5,046.20.

Individual movers: Shares in London-listed Wolseley PLC (WOS.LN) jumped 5.1% after the plumbing and building materials supplier reported a fall in interim net profit, though trading profit -- the company's main metric -- rose (http://www.marketwatch.com/story/wolseley-profit-down-to-change-name-exit-nordics-2017-03-28) thanks in part to a boost from exchange rate movements.

Wolseley also said it plans to exit the Nordic region due to a lack of synergies with the rest of the company and change its name to Ferguson PLC, its U.S. brand.

AA PLC (AA.LN) was another big winner, rising 5.8% after the roadside assistance provider announced profit growth and raised its dividend (http://www.marketwatch.com/story/aa-lifts-dividend-as-full-year-profit-rises-2017-03-28).

Tenaris SA (TEN.MI) , which makes pipes for the energy industry, finished 7.7% higher after Chief Executive Officer Paolo Rocca said he has received encouraging feedback from the Trump administration, according to a Bloomberg report (https://www.bloomberg.com/news/articles/2017-03-27/billionaire-pipemaker-touts-jobs-over-imports-in-trump-s-america).

(END) Dow Jones Newswires

March 28, 2017 12:31 ET (16:31 GMT)

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