Brexit optimism pushes European stock markets

PARIS (Reuters) – Europe's major stock markets opened higher on Tuesday, buoyed by renewed hope for the Brexit outcome, although uncertainty over trade between Chinese and Americans remains in the headlines.
In Paris, the CAC 40 index gained 0.58% to 5.675,81 points around 7:55 GMT. In Frankfurt, the Dax takes 0.43%, to a high of nearly three months. In London, the FTSE takes 0.12%, held back by the pound rise.
The EuroStoxx 50 index of the euro zone advances by 0.68%, the FTSEurofirst 300 by 0.62% and the Stoxx 600 by 0.52%.
It is still possible to find this week an agreement on the exit of the United Kingdom from the European Union, even if this task is increasingly difficult, said Tuesday morning the chief European negotiator, Michel Barnier.
This statement reassured investors, just before the opening of the market, on the outcome of Brexit.
The British had Tuesday morning put on the table new proposals to break the deadlock, reported shortly after the Irish public television channel RTE.
Discussions must be held throughout the week to determine whether the Brexit will be orderly, whether it will be disorderly or whether the divorce will be postponed again.
If the trend is dominated by the prospect of an agreement, the lack of clarity on the trade dossier between the United States and China remains in the background.
"Apart from the promise not to raise US tariffs on 250 billion Chinese goods this October 15 and the Chinese promises to buy US agricultural products en masse", the rest of the "agreement" remains very vague ", recalls Mirabaud in his morning note.
The session will be animated by the publication at 09:00 GMT of the ZEW index of investor sentiment in Germany; it is expected down to -27.0 from -22.5 last month.

VALUES
On the stock market, Airbus is leading the CAC 40 (+ 1.76%) after Barclays' start to cover "overweight". Bouygues earns 1.07% after a hiring of HSBC board with the purchase.
Conversely, Remy Cointreau fell by 2.13%, at the back of the pack of SBF 120, after a deterioration of Berenberg to "preserve".
Elsewhere in Europe, the German payments specialist Wirecard plummets by 16%, to a low of almost six months, because of suspicions of fraudulent accounting and financial practices after an article published Tuesday by the Financial Times.
IN ASIA
The Tokyo Stock Exchange, closed on Monday due to a holiday, climbed to a three-week high in reaction to the partial trade agreement reached between the United States and China last Friday. The Nikkei index gained 1.87%, the highest since September 19th.
China's large-cap CSI 300 lost 0.4%, after five straight rises, affected by uncertainties on trade and lower producer prices in China.
The producer price index recorded its largest decline since July 2016, highlighting the need for Beijing to take additional measures to support the economy in the face of weakening demand amid pressures. US commercial banks.

A WALL STREET
The New York Stock Exchange ended a very slight decline (-0.1%) Monday against the backdrop of resurgence of doubts about Sino-US trade negotiations, while investors are now turning their attention to the season of quarterly results, which begins this Tuesday with several major American banks.
Citigroup, Goldman Sachs, JPMorgan and Wells Fargo are due to release their third quarter accounts before the opening of Wall Street.

RATE
On the side of government bonds, the US bond market reopened on Tuesday the day after a holiday. The yield on 10-year Treasuries lost six basis points, below 1.7%, erasing some of the gains made Friday on expectations of a trade agreement between the United States and China.
In early trade, the German 10 is down moderately, at -0.47%.

EXCHANGE
The dollar index is almost unchanged against a basket of international currencies and the single European currency is stable at 1.102 against the greenback.
The pound sterling gains about 0.4% against the dollar and the euro, supported by the encouraging statements of Michel Barnier on Brexit.

OIL
Oil prices are down, the significant drop in Chinese producer prices added to uncertainties over the evolution of the US-China trade dispute.
The barrel of Brent loses 0.51% around 59 dollars and that of American light crude (West Texas Intermediate, WTI) down to 53.25 dollars (-0.63%).

(Edited by Sophie Louet)