China stimulus boosts European shares, autos rally after Peugeot results

  • Reuters
  • Stock Market News
China stimulus boosts European shares, autos rally after Peugeot results
Credit: © Reuters.

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LONDON, Jan 15 (Reuters) - European shares bounced on Tuesday after China signalled more stimulus measures to soften the blow from an ongoing tariff war with the United States, triggering relief in trade-sensitive tech, mining, and car stocks as some results also impressed.

The pan-European STOXX 600 .STOXX was up 0.6 percent by 0829 GMT, with the trade-sensitive DAX .GDAXI up 0.8 percent and the FTSE 100 .FTSE rising 0.5 percent.

Sectors reliant on trade and exports to China, like tech, industrials, basic resources, and autos, were the top gainers.

The autos sector .SXAP jumped 2.2 percent to its highest since Dec. 5 on the stimulus news and after a strong update from Peugeot maker PSA Group PEUP.PA soothed investors' concerns about carmakers facing slowing demand in China.

Shares in the carmaker climbed 2.3 percent to their highest since mid-November after reporting record sales for 2018. company Hays HAYS.L also shone after strong results which showed an 8 percent rise in quarterly net fees, boosted by strong hiring in Germany, its biggest market. was a driver with Swedish telecoms company Millicom TIGOsdb.ST up 4.7 percent after a bid from Liberty Latin America LILA.O . KINVb.ST , the majority stakeholder in Millicom, rose 4 percent among top STOXX gainers.

On the negative side, UK bookmakers Paddy Power Betfair PPB.I , William Hill WMH.L , GVC Holdings GVC.L and 888 Holdings 888.L fell 1.7 to 3.2 percent after the U.S. Justice Department published an opinion which could further restrict online gambling.

Chocolate maker Lindt & Spruengli LISN.S fell 3.1 percent after reporting sales rose 5.1 percent in 2018, in line with its "around 5 percent" goal, but highlighted the market environment remained "very challenging". among mid-caps, shares in sub-prime lender Provident Financial PFG.L plunged 20 percent after it issued a profit warning, citing higher impairments at its credit card business Vanquis Bank.

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