European shares rallied to more than five-month highs on Thursday, boosted by fading risks of a no-deal Brexit and overcoming fears about a possible delay in trade talks between the United States and China.
LONDON (Reuters) – European shares rallied to more than five-month highs on Thursday, boosted by fading risks of a no-deal Brexit and overcoming fears about a possible delay in trade talks between the United States and China.
A pan-European equity index rose as high as 0.8 percent, its highest level since October after Britain’s parliament vote on Wednesday removed a key source of uncertainty by rejecting a no-deal Brexit.
European stocks had earlier stumbled after Bloomberg reported that a meeting between U. S. President Donald Trump and Chinese President Xi Jinping to end their trade war was more likely to take place in April at the earliest, later than expected.
The lingering trade spat between the two superpowers has been a cloud hanging over markets and there had been hopes Trump and Xi would hold a summit aimed at finding a breakthrough at the president’s Mar-a-Lago property in Florida this month.
The decision by Britain’s parliament had lifted British shares 0.8 percent.
The vote paves the way for a delay to Brexit beyond the current March 29 deadline which could lead to an EU divorce deal being agreed or even another referendum.
Goldman Sachs analysts told clients the probability of a no-deal Brexit had fallen to 5 percent from 10 percent after Wednesday vote.
