(Reuters) – European shares opened higher on Monday, driven by a rally in miners, while sentiment remained fragile as the United States and China kicked off the latest round of tit-for-tat tariffs on each others goods.
Britain’s FTSE 100’s () 0.4% jump led gains, with mining majors such as BHP (L:) and Rio Tinto (L:) rising on a surge in iron ore prices overnight in top consumer China.
Iron ore prices were supported by a pledge on Saturday from Beijing to beef up investment in infrastructure projects and regional development to support a slowing economy.
Meanwhile, Washington’s 15% tariffs on a variety of Chinese goods came into effect on Sunday, while China began to implement new duties on a $75 billion target list.
However, both sides will still meet for talks later this month, U.S. President Donald Trump said.
Trade-sensitive German shares () was up 0.1% and the pan-European stocks benchmark index STOXX 600 () rose 0.3% by 0714 GMT, beginning September higher after a 1.6% drop in August as the trade war, which has roiled financial markets and raised global recession fears, rages on for more than a year.
With U.S. markets shut for a local holiday, volumes are expected to thin.
A slew of official and private manufacturing numbers from the euro zone expected during morning trade may also sway markets. These will come after data from China painted a bleak outlook for its factories.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
