EUROPE MARKETS: European Markets Rally On Upbeat Data, Trade-talk Hopes

By Barbara Kollmeyer, MarketWatch , Emily Horton

Trade headlines also inspire gains

European markets got into rally mode on Tuesday, boosted by upbeat economic data out of the region's biggest economy, and positive signals on the global trade front.

Pharmaceuticals, oil and auto stocks were driving the gains.

What did markets do?

The Stoxx Europe 600 ended 1.5% higher at 344.18, after closing down 1.8% on Monday.

Germany's DAX 30 rose by 1.5% to finish at 10,780.51, while France's CAC advanced 1.4% to 4,806.20.

The U.K.'s FTSE 100 jumped 1.3% to 6,806.94, and Italy's FTSE MIB Italy index gained 1% to 18,591.01.

What is driving the markets?

President Donald Trump tweeted Tuesday (https://twitter.com/realDonaldTrump/status/1072480983683870720) that the U.S. was engaged in "very productive conversations" with China. A fresh round of trade talks kicked off late Monday via a phone call between Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He.

Along those lines, auto stocks in Europe and the U.S. surged after a report from Bloomberg News (https://www.bloomberg.com/news/articles/2018-12-11/china-is-said-to-move-on-u-s-car-tariff-cut-trump-tweeted-about) that the Chinese government is reviewing a proposal to cut tariffs on U.S. made autos to 15% from 40%.

Cheer on the European economic front also lifted investor spirits. The ZEW economic research institute reported that German economic expectations rose in December (http://www.marketwatch.com/story/german-economic-expectations-rise-says-zew-2018-12-11), though they remained below the long-term average. Those expectations came in above forecasts.

And in France, markets got a lift after President Emmanuel Macron announced plans to cut taxes and lift wages for workers (https://www.wsj.com/articles/macron-pledges-tax-cuts-minimum-wage-hike-to-placate-protests-1544474039?mod=searchresults&page=1&pos=9), in a bid to calm the civil unrest that has been gripping Paris and other cities.

What stocks are active?

Pharmaceutical stocks gained ground, with Novartis AG (NOVN.EB)(NOVN.EB) climbing 2.4%.

Advertising giant WPP PLC (WPP.LN) rose by almost 5%, after the company said it would simplify its structure in an effort to pursue savings goals (http://www.marketwatch.com/story/wpp-sets-savings-goal-will-prioritize-buybacks-2018-12-11) by 2021.

Ashtead Group PLC (AHT.LN), the equipment rental company, climbed 3.6% on the news of a profit rise and positive expectations for their year-end results (http://www.marketwatch.com/story/ashtead-profit-rises-upbeat-on-full-year-results-2018-12-11).

Among autos, Daimler AG (DAI.XE) rose 2.7% and BMW AG (BMW.XE) advanced 1.8%.

(END) Dow Jones Newswires

December 11, 2018 16:25 ET (21:25 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.