European Markets Rebound As Fear Over Korean Tension Slows Down

European Markets

European stocks edged higher following Asian equities as tensions around North Korea eased.

All sectors in Stoxx Europe 600 Index advanced after President Donald Trump’s measured response to North Korea’s missile launch and comments from Kim Jong Un suggested the situation won’t escalate.

The Stoxx Europe 600 Index climbed 0.6 percent, the highest advance in more than a week.

The U.K.’s FTSE 100 Index rose 0.5 percent, the biggest advance in more than a week on a closing basis.

Germany’s DAX Index advanced 0.6 percent, also the largest advance in more than a week.

Banking stocks also climbed Wednesday morning supported by some upgrades in the sector. Swedbank rose 1.7 percent after JPMorgan upgraded its recommendation on the Swedish lender.

In Asia, The Topix index rose 0.6 percent and the Kospi Index rose 0.3 percent. Australia’s ASX 200 was flat.

The Hang Seng Index in Hong Kong climbed 1.1 percent, while the Shanghai Composite Index inched lower. The MSCI Asia Pacific Index rose 0.1 percent.

In currencies, the euro declined 0.2 percent to $1.1948, the biggest fall in more than a week, while the British pound slid 0.1 percent to $1.2905.

On commodities, Brent crude traded around $51.98 per barrel, while the West Texas Intermediate crude dropped 0.2 percent to $46.36 per barrel, the lowest in almost six weeks.

Gasoline for September delivery rose 3.1 percent to $1.8392 a gallon and is up more than 9 percent this week.

 

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