BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets ended on a buoyant note on Thursday, riding on positive comments from the U.S. and China about resumption of trade talks.
Markets reacted to economic data from the region and also digested comments reportedly made by European Central Bank official Klass Knot that he saw no reason for quantitative easing to be resumed in the region.
The all European Stoxx 600 ended up 1.04%. France's CAC 40 gained 1.51% and Germany's DAX advanced 1.18%, while the U.K.'s FTSE 100 ended up 0.98%. Switzerland's SMI gained 0.82%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Finland, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey all ended on a bright note.
Denmark and Iceland ended flat.
In the British market, Smiths Group, Ocado, Ashtead Group, Antofagasta, CRH, Carnival, Glencore, Berkeley, Burberry Group, EasyJet, WPP, Scottish Mortgage, IAG and Vodafone Group gained 2 to 5.3%. Standard Chartered and HSBC also ended sharply higher.
Shares of Micro Focus plunged more than 30% after the company cut its full-year guidance, citing lower spending by clients amid a worsening macro environment.
In Germany, Thyssenkrupp, Covestro and Infineon gained 2.9 to 3.4%. BASF, HeidelbergCement, Deutsche Post, Linde, Siemens, Deutsche Telekom and Bayer moved up 1.4 to 2%.
In the French market, Bouygues rose nearly 7% lifted by better than expected first-half results.
ArcelorMittal gained nearly 4%. STMicroElectronics, Safran, Airbus Group, Michelin, Legrand, Societe Generale, Air Liquide, Saint Gobain, Peugeot and Credit Agricole moved up 1.7 to 3.2%. BNP Paribas, Louis Vuitton, Atos, Total, Vivendi and Kering also rose sharply.
In economic news, Eurozone economic confidence improved unexpectedly in August driven by industry and services, survey data from the European Commission showed Thursday.
The economic sentiment index rose to 103.1 in August from a 40-month low of 102.7 in July, while the reading was forecast to fall to 102.3.
Another report from EU showed that business climate improved markedly in August. The corresponding index rose to +0.11 from -0.11 in July. The score was forecast to drop to -0.15.
Germany's consumer price inflation eased more-than-expected in August, flash estimate from Destatis showed Tuesday. Prices advanced 1.4% year-on-year in August, slower than the 1.7% increase seen in July and the expected increase of 1.5%.
On a monthly basis, consumer prices dropped 0.2% compared to economists' forecast of 0.1% drop.
Meanwhile, the number of unemployed in Germany grew by a seasonally adjusted 4,000 persons after a 1,000 increase in July, preliminary data from the Federal Employment Agency showed. The rise was in line with economists' expectations.
In political news from Italy, the 5-Star Movement and the opposition Democratic Party said they would try to form a coalition and avoid snap elections.
On the U.S.-China trade front, Chinese Ministry of Commerce spokesman Gao Feng indicated China does not currently intend to retaliate against President Donald Trump's latest threat to raise the rate of tariffs on Chinese imports.
Gao claimed China has plenty of countermeasures it could impose but will instead focus on removing Trump's new tariffs, which were announced after China said it plans to impose tariffs on $75 billion worth of U.S. goods.
'The most important thing at the moment is to create necessary conditions for both sides to continue negotiations,' Gao told reporters during a weekly briefing.
Trump later told Fox News the U.S. and China are scheduled to hold talks later today at a 'different level,' although he did not clarify what that means.
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