Euro Stock Exchanges Up on German Data

European stock exchanges bounced back on Friday thanks to better readings from significant eurozone economies.

The data from these economies overshadowed the looming concerns relating to the US-China trade negotiations.

The STOXX 600 index gained 0.4%, while London shares performed better with a 0.9% gain.

This outperformance in the London exchange came after miners, banks, and energy firms recovered from sharp declines earlier in the week.

Over in Germany, the DAX gained 0.2% after the IHS Markit’s final Purchasing Managers’ index data.

The reading showed that German business conditions still deteriorated in November. But it was at a slower pace than previous interpretations.

In recent months, European investors have worried about a deepening German recession amid overseas trade risks. Uncertainties over the United Kingdom’s departure from the European Union also weighed on their shoulders.

As a result, this semi-positive reading was a welcome relief.

Eurozone Stock Exchanges and US-China tensions

According to an analyst, the PMI data reflects market optimism over a phase one deal. At the same time, markets are expecting the deal to happen soon.

However, the analyst also warned to await China’s reaction to the bill relating to the Hong Kong situation. The Senate bill aims to support the protesters in the city-state.

Also, the US previously castigated the Chinese police force of violating the human rights of the protesters, which were mostly youth.

Despite the gains today, the STOXX 600 will close its first weekly decline in seven weeks.

Meanwhile, Chinese president Xi Jinping recently said that China wants the deal with the US.

This comment doused fear of trade talks fizzling out. However, Xi also said that the Asian country would fight back to get the best out of the trade negotiation.

Market participants expect Trump to sign the two bills for Hong Kong into law.