UPDATE 1-European shares recover after Trump signal on trade war


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(Reuters) – European shares recovered some ground on Friday after a bruising session a day earlier, as President Donald Trump predicted a swift end to the damaging U.S. trade war with China.

FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 15, 2019. REUTERS/Staff

The pan-European STOXX 600 was up 0.6% by 0744 GMT but remained on track to post a weekly loss and its first monthly decline since a steep sell-off at the end of last year.

Trump said late on Thursday that U.S. complaints against Huawei Technologies could be resolved within the broader trade framework, though no high-level bilateral talks have been scheduled yet.

Deutsche Bank Research analysts said Trump’s comments on Huawei showed the issues were linked “and that he remains amenable to a broad deal”.

China-focused semiconductors stocks rose, in turn pushing the European tech sector 0.8% higher.

Auto and mining stocks were the top sectoral performers, while Germany’s trade-sensitive DAX, up 0.7%, led the way among country indexes while

A slight recovery in the pound kept a lid on advances in London’s blue-chip FTSE 100, which tends to underperform when Britain’s currency rises.

Prime Minister Theresa May is expected on Friday to announce the date of her departure, triggering a contest that will bring a new leader to power who is likely to push for a more decisive Brexit divorce deal. Ministers expect May to make a statement by mid-morning.

On a relatively quiet day for company news, France’s Casino shares jumped 11% after the retailer said its parent company Rallye’s filing for protection from creditors had no impact on the execution of its strategy.

Danske Bank shares rose after Bank Of America Merrill Lynch double-upgraded its shares while a Goldman Sachs rating raise lifted Royal Mail.

Reporting by Medha Singh and Agamoni Ghosh in Bengaluru; editing by Patrick Graham and John Stonestreet


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