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Europe: Shares extend gains on trade war hopes; UK shares up
[MADRID] European shares rose at the open, adding to the strong gains on Tuesday, as investors welcome renewed optimism on the US-China trade war. British shares rose amid news that Prime Minister Theresa May is set to face a vote of no confidence in her leadership.
The Stoxx Europe 600 was 0.3 per cent up, lead by gains in technology shares, while retailers stocks dropped dragged down by Inditex SA, which fell 5 per cent after reporting weak quarterly sales. Italian shares rose after a report that Deputy Prime Minister Matteo Salvini may seek to hold early elections in March, while UK's FTSE 100 jumped 0.4 per cent on new political turmoil.
President Donald Trump told Reuters in an interview trade talks with China area underway by phone and he would be willing to meet with President Xi Jinping to advance in the matter.
"Investors are in a very negative mood overall so any positive news is a good excuse to buy," said Ricardo Gil, head of asset allocation at Trea Asset Management. "Managers are getting their portfolios ready for next year, with liquidity already starting to be lower as Christmas approaches."
Britain's May is facing her deepest crisis as she will face a vote of no confidence in her leadership of the Conservative Party, senior Tory official Graham Brady said Wednesday before markets opened.