London: European stock markets rose Wednesday as investors brushed aside losses in Asia and on Wall Street.
Asian equity indices dropped earlier on Wednesday as news that US President Donald Trump had replaced his moderate secretary of state with a hawk fanned fears of instability in the White House and a more hardline approach to foreign affairs.
News on Tuesday that Rex Tillerson had been sacked had already rattled US equities the same day.
Tillerson has been replaced by CIA chief Mike Pompeo, who is an advocate of taking a hardline with China on trade and Iran.
“After another shake up in the White House unnerved investors overnight,” said Fiona Cincotta, senior market analyst at City Index traders.
But she added that London’s benchmark FTSE 100 won support from rising share prices for heavyweight miners.
The biggest climber on the British index was meanwhile Prudential, which shot up 5.6 percent to 1,928.5 pence after the insurer said it would split in two to better serve its regions of operation.
“The London market is being helped along by mining companies, on the back of respectable industrial production figures from China,” said David Madden, market analyst at CMC Markets UK.
“Shares in Prudential are up… after the company revealed plans to demerge,” he added.
Spanish retail giant Inditex meanwhile jumped 2.4 percent to 24.84 euros after the group posted rising annual profits — and outperforming its long-time Swedish rival H&M.
In foreign exchange, the dollar was down versus the euro and pound.
“The dollar sell-off can be attributed to the combination of lower (US inflation) and the White House revolving door syndrome that exudes little confidence in the administration,” said Stephen Innes, head of Asia-Pacific trading at Oanda.
Official data Tuesday showed US inflation eased in February, helping to wind back concerns that the Federal Reserve would hike interest rates faster than expected this year.
Source: Brecorder.com
