European shares positive on earnings growth forecasts

European shares edged up on Wednesday as optimism towards Washington and Beijing trade talks lifted global markets and data showed earnings growth forecasts for Europe were no longer falling for the fourth quarter after steep downward revisions.

The pan-European STOXX 600 was up 0.4 percent at 0829 GMT, with Germany’s tradesensitive DAX up 0.6 percent and Paris’ CAC 40 up 0.4 percent. A fresh batch of corporate earnings triggered strong price moves both upwards and downwards.

Dutch bank ABN Amro, hit by loan impairments, fell 6.3 percent with fourth-quarter net profit way below analysts.

Dutch blue chip peer Heineken had a totally different welcome from the market, rising 4.3 percent and set for its best day since 2015 on better-than-expected results.

Still in the Netherlands, paint maker Akzo Nobel jumped 3.9 percent after marginally beating expectations.

Asian stocks reached a more than four-month high, lifted by optimism that the United States and China might be able to hammer out a deal to resolve their nearly year-long trade dispute. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.6 percent to its highest level since early October and Japan’s Nikkei average climbed 1.3 percent to an eight-week high.

Asia took its cue from Wall Street, where the Dow and Nasdaq each rallied about 1.5 percent overnight on optimism over U.S.-China trade negotiations and a tentative U.S. congressional spending deal to avert another partial government shutdown.

U.S. President Donald Trump said on Tuesday that he could see letting the March 1 deadline for reaching a trade agreement with China “slide for a little while,” if the two sides were close to a complete deal. Officials in Washington and Beijing had expressed hopes that a round of talks this week would bring them nearer to easing their seven-month trade war.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.