European shares positive on upbeat China data

European shares rose on Friday, as a surprise bounce in China’s manufacturing activity calmed investors worried about the progress in U.S.-China trade talks due to conflicting tones. The pan-European STOXX 600 index rose 0.3% at 0810 GMT, led by China-exposed German stocks gaining 0.4%.

China’s factory activity unexpectedly expanded at the fastest pace since 2017, raising optimism for the health of the world’s second-largest economy. Miners recouped their losses from the previous session and led the gains for the benchmark index.

Danish companies stood out on the earnings front. Transport and logistics services company DSV Panalpina rose 6% to the top of the STOXX 600 index after reporting strong thirdquarter results despite challenging conditions in the freight market.

On the other hand, Denmarks’s biggest lender Danske Bank slid 6% after narrowing its annual profit outlook as the tainted Scandinavian lender grapples to restore trust after being involved in one of the world’s biggest money laundering scandals.

Japan’s benchmark Nikkei share average fell on Friday as fresh concerns over the prospects for a U.S.-China trade deal lifted the safe-haven yen against the dollar, hitting exporters and other cyclical stocks. The Nikkei average closed down 0.3%, after falling to as low as 22,705.60, its lowest since the 24 October. For the week, the index eked out a 0.2% gain, to mark its fourth consecutive weekly rise. The broader Topix ended flat at 1,666.50.

Chinese officials doubt a comprehensive long-term trade deal with Washington and U.S. President Donald Trump is possible, Bloomberg reported on Thursday, citing unnamed sources. The latest blow to hopes the world’s two largest economies will reach a deal to end their trade war comes despite comments from Trump that the countries would soon announce a new site for the signing of a “Phase One” deal, after Chile cancelled a planned APEC summit set for mid-November.

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.