UKX FTSE 100 Index

By Emily Horton

Drug stocks help drive gains

European markets rose n Tuesday, as optimism over reignited trade talks between the U.S. and China spurred investors to pick up perceived riskier assets such as stocks.

How are markets trading?

The Stoxx Europe 600 gained 1.5% to 347.94, after finishing down 0.15% on Monday.

The French CAC 40 rose 1.9% to 4,807.99, while Italy's FTSE MIB index gained around 1.1% to 19,171.16. While the U.K.'s FTSE 100 jumped 1.2% to 6,894.17 and Germany's DAX 30 added 1.5% to 10,905.26.

The euro fell to $1.1432 from $1.1476 late in New York on Tuesday. The pound eased to $1.2737 from $1.2779.

What is driving the markets?

A second day of trade talks between the U.S. and China and optimism around those discussions drove global equities higher, with Wall Street kicking off its third-straight session of gains.

Investors were able to shake off other worries such more signs of stress in the tech sector. South Korean tech giant Samsung Electronics Co. (005930.SE) warned of a 29% fall in fourth-quarter operating profit, (https://www.marketwatch.com/story/samsung-electronics-warns-profit-will-tumble-29-2019-01-08https:/www.marketwatch.com/story/samsung-electronics-warns-profit-will-tumble-29-2019-01-08) citing "mounting macro uncertainties" and "lackluster demand." That caution comes a week after Apple Inc.'s (AAPL) shock warning over sales.

Weak European data was also brushed aside. German industrial production data revealed a surprise slump in November (http://www.marketwatch.com/story/german-industrial-production-unexpectedly-slumps-2019-01-08), adding to recent evidence that a nine-year recovery in Europe's largest economy is foundering.

In the U.K., British and European officials are reportedly discussing the possibility of delaying Brexit (http://www.marketwatch.com/story/brexit-brief-uk-government-quashes-reports-of-delay-to-eu-exit-2019-01-08), amid ongoing opposition from U.K. politicians over an exit deal secured by Prime Minister Theresa May last year.

What stocks are active?

Denmark's Bang & Olufsen A/S (BO.KO) soared 13% on Tuesday, after posting strong growth projections (http://www.marketwatch.com/story/bang-olufsen-sales-drops-9-sees-growth-pickup-2019-01-08).

Pharmaceutical names were also higher, with Novartis AG (NOVN.EB) (NOVN.EB) climbing 1.8% and Sanofi SA (SAN.FR) (SAN.FR) up 1.2%.

Among retailers, Next PLC (NXT.LN) jumped 6%. Supermarkets were in focus after consultancy Kantar reproted record holiday sales for the group, with Tesco PLC (TSCO.LN) up 3%.

Wm. Morrison Supermarket PLC (MRW.LN) dropped by 2.6% after its Christmas trading announcement (http://www.marketwatch.com/story/wm-morrison-boosted-by-wholesale-over-christmas-2019-01-08) was overshadowed by younger rival Aldi, which reported 10% growth in sales numbers on Monday.

(END) Dow Jones Newswires

January 08, 2019 09:37 ET (14:37 GMT)

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