European stocks rose across the board on Tuesday, nearing three-week highs as China’s premier lifted hopes that a global trade war can be averted.
German stocks led the gains, with Bayer AG soaring on positive deal news.
Some Russian stocks were attempt to recover after a plunge Monday over geopolitical pressure surrounding Moscow.
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How markets are moving
The Stoxx Europe 600 SXXP, +0.58% rose 0.6% to 377.46, after finishing up 0.1% on Monday. If the pan-European benchmark holds at current levels, that would be the best finish since March 16.
Even stronger gains were seen for Germany’s DAX 30 DAX, +1.03% which climbed 1% to 12,387.55, its best level since March 12. France’s CAC 40 PX1, +0.54% tacked on 0.7% to 5,298.98, the highest since Feb. 28. The U.K.’s FTSE 100 UKX, +0.68% rose 0.3% to 7,218.85, the best since March 9.
Read: FTSE 100 rises as China renews hopes for global trade calm
The euro EURUSD, +0.3246% traded at $1.2324, up from $1.2323 late Monday in New York. The Russian ruble USDRUB, +4.3063% continued to sell off on Tuesday, falling to 62.49 rubles against the U.S. dollar, for a drop of just over 3%.
What’s driving markets
Europe was being swept along by a global equity rally after Chinese President Xi told the Boao Forum that Beijing is working on plans to improve access for foreign companies to financial and manufacturing sectors. They include a cut in tariffs on car imports and an improvement in protection of intellectual property, among other measures.
Worries about a global trade war have regularly acted as a weight on global stocks for weeks as the Trump administration and China exchanged tit-for-tat threats of levies. In recent days, though, investors have grown more optimistic as both sides took a more conciliatory tone.
Also on the geopolitical front, President Donald Trump said Monday he would soon make a “major” decision about how to respond to what he called a “heinous” chemical-weapons attack in Syria. The escalating tensions have fed concerns that renewed conflict could hinder oil output in the Middle East.
See: Syrian air base reportedly struck by missiles
What strategists are saying
While China’s president had a few digs at Trump in his speech, “it was his comments on import tariffs, which he said would be ‘significantly’ lower for autos, and his promise that the country would do more to enforce intellectual property rights of international firms, ostensibly a key concern for Trump, that really caught the ear of the markets,” said Connor Campbell, financial analyst at SpreadEx, in emailed comments.
“Now all Trump needs to do is avoid making any inflammatory, gains-derailing comments of his own,” Campbell added
Stock movers
Among the leading heavyweight gainers in Europe, Bayer AG BAYN, +2.73% surged 5.3%, after the U.S. Justice Department said it will allow the pharmaceutical and chemical group to go ahead with its $62.5 billion deal to buy Monsanto Co. MON, +6.19% . The companies agreed to sell additional assets to secure that approval.
Read: Bayer contraceptive Essure targeted again by FDA
Auto maker Daimler AG DAI, +1.67% rose 1.3%.
Raiffeisen Bank International AG RBI, -0.88% slid 9.7%, leading decliners in Europe. Russian-based shares were under pressure on Monday in reaction to weekend news of U.S. sanctions on the country. BNP Paribas SA BNP, +0.69% said Tuesday it will buy the core banking operations of Raiffeisen’s Polish unit for 775 million euros ($953 million). The French bank’s shares were up 0.4%.
Other Russian shares were recovering. Among them, Evraz PLC EVR, +1.50% a steel and mining company with operations in Russia but headquartered in London, rebounded 3.8% after Monday’s sharp losses.
Mining stocks were up in London, gaining after Xi’s comments. China is a major buyer of industrial and precious metals. Heavyweight Rio Tinto PLC RIO, +3.01% RIO, +0.75% RIO, +2.76% led with a 2.8% gain, while BHP Billiton PLC BLT, +3.02% BLT, +3.02% put on 2.7%.
Glencore PLC GLEN, +2.79% GLEN, +2.79% GLEN, +2.79% was up 1.8%. The Anglo-Swiss mining and commodity-trading company said Chief Executive Ivan Glasenberg has stepped down as director of Russia-based United Co. Rusal PLC 0486, -8.70% , which fell 7% in Hong Kong after a 50% plunge on Monday in the wake of the latest U.S. sanctions.