Trade optimism, upbeat earnings send European shares to four-year peak
By Susan Mathew
(Reuters) - European shares rose for a fifth straight session on Thursday to hit fresh four year highs as investors cheered signs of progress in U.S.-China trade talks and largely positive earnings reports from a host of companies.
Shares of Siemens
Lufthansa
On the trade front, China's commerce ministry said the world's two economic giants were working on a deal that would roll back trade tariffs in different stages.
"There are still hurdles to be overcome but it is encouraging that, contrary to last spring, Chinese negotiators are sending more positive signals, as well their U.S. counterparts," said Raoul Leering, head of international trade analysis at ING.
The news sparked a broad-based rally in Europe, while Wall Street was pushed to a record high. Trade-sensitive Frankfurt shares <.GDAXI> rose 0.8% to close at their highest level since February 2018.
It also helped investors shrug off another weak data point from Germany showing industrial output fell more than expected in September.
London's FTSE 100 <.FTSE> rose 0.1% as the pound
"That suggests that the Bank is very unlikely to follow through with its signaled rate hikes (if Brexit goes smoothly) any time soon," ING's developed markets economist James Smith said.
But a 9.7% tumble in insurer Hiscox
The FTSE midcap index <.FTMC> and Irish stocks <.ISEQ> gained 1.1% and 1.3%,respectively.
The pan-European STOXX 600 index <.STOXX> closed up 0.4%. It is now a little over 2% away from its record high hit in April 2015.
Among the top gainers across European sub-sectors were automakers <.SXAP> and miners <.SXPP>, while defensive plays such as telecoms <.SXKP> and utilities <.SX6P> fell, suggesting higher risk appetite.
The world's largest steelmaker ArcelorMittal (NYSE: MT) jumped 6.7% on better-than-expected results. Shares in wind turbine maker Vestas
French gas and power group Engie
(Reporting by Shreyashi Sanyal and Susan Mathew in Bengaluru; Editing by Kirsten Donovan)