German chemical deal lifts European shares, FTSE lags

Credit: Reuters Studio
Published on August 7, 2019 - Duration: 01:17s

German chemical deal lifts European shares, FTSE lags

Europe's shares rose on Wednesday after three days of falls, as deal-making in the chemical sector helped offset losses from mining majors and banks.

But amid lingering trade worries German industrial output data was described as 'scary'.

David Pollard reports.

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German chemical deal lifts European shares, FTSE lags

Europe's stock markets on the rise on Wednesday ... Despite quote 'scary' data.

That's how one analyst described Germany's June industrial output numbers: A worse than expected one and half per cent drop stokes fears of recession.

Germany's main stock index, though, was up strongly ... On news of deal-making by Bayer and others in the chemical sector.

If, at the same time, banks were pulled down by Unicredit - it cut its revenue target .... And by Commerzbank - down almost four per cent ..

Whose own targets, it said, had become "significantly more ambitious".

ABN Amro, meanwhile, hit a three-year low on talk of weaker margins.

On London's FTSE, mining shares lagged after Glencore - hit by collapsing cobalt prices - announced a 32 per cent drop in first-half profits.

Even so, bourses began the day with strong gains after three days of losses.

As US-China trade war worries receded.

That is, for shares at least.

German bund yields tumbled to new record lows as some investors continued to seek safer assets.

Oil prices extended their heavy losses - Brent crude setting a new 7-month low... And gold rose: spot prices jumping more than one per cent early on Wednesday to a more than six-year high.

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