UPDATE 2-New trade talks revive European stocks, momentum slows

  • Reuters
  • Stock Market News
UPDATE 2-New trade talks revive European stocks, momentum slows
Credit: © Reuters.

* STOXX 600 down 0.15 pct, STOXX50E up 0.2 pct

* Autos up 1.1 pct after new U.S.-China talks

* Natixis climbs on $3.1 bln sale with view to acquisitions

* Rubis tumbles after first-half profit dented (Updates prices, adds details)

By Helen Reid

LONDON, Sept 13 (Reuters) - Europe's trade-sensitive autos and mining shares climbed on Thursday on news of fresh U.S.-China trade talks, though the broader market lost momentum after central bank decisions and new U.S. sanctions on Russian and Chinese tech firms.

The pan-European STOXX 600 .STOXX ended the day down 0.15 percent, while Germany's DAX .GDAXI and the index of biggest euro zone stocks .STOXX50E held on to gains of 0.2 percent.

Autos shares .SXAP rose 1.1 percent after U.S. officials invited China to new trade talks, which the Chinese foreign ministry welcomed. shares have been among the biggest victims of trade tensions between the United States and its trading partners.

"You have to be concerned about the impact [of trade tensions on autos] because the evidence is that companies are seeing pressures as a consequence," said Steven Magill, head of European Value at UBS Asset Management.

"But the share prices appear to be discounting a negative scenario already," added Magill, who holds Peugeot in his European portfolio.

Tech .SX8P also rose as chipmakers and Apple (NASDAQ: AAPL ) suppliers ams AMS.S , Infineon IFXGn.DE , BE Semiconductor BESI.AS , and STMicro STM.PA climbed 1.5 to 5 percent after Apple launched bigger and pricier iPhones. stocks gave back some gains, however, after Washington imposed new sanctions on a China-based tech firm, its North Korean CEO and a Russian subsidiary, accusing them of moving illicit funding to North Korea in violation of U.S. sanctions. GAINS

Dealmaking and results led to some strong stock moves, particularly in the banking sector.

French bank Natixis CNAT.PA gained 3.1 percent after it decided to sell several specialized finance businesses to its parent, BPCE, and use part of the 2.7 billion euros ($3.1 billion) in proceeds for acquisitions.

"No major acquisition expected, nothing imminent at the moment, but things could always develop by the time of the special dividend," wrote KBW analyst Jean Pierre Lambert.

Commerzbank CBKG.DE rose 2.5 percent after UBS analysts upgraded the stock to a "buy".

News that Deutsche Bank is considering an overhaul to loosen the bond between its retail and investment banks, making it easier to merge some or all of the group with rival lenders, helped lift its shares DBKGn.DE up 2 percent. reports have suggested mergers between the two German lenders, as well as possible deals involving Italian and French banks, but banks remain the worst-performing sector in Europe year-to-date.

"Despite all the recent rumours around UniCredit and other European banks, cross-border banking M&A will be limited, if any, in the foreseeable future," said Jauke de Jong, equity analyst at AFS Group in Amsterdam.

Banks .SX7P nevertheless were the second-best performers, up 0.7 percent, after the Turkish central bank's decision to sharply raise rates boosted the lira TRY= , causing a rally in Turkey-exposed banks BBVA BBVA.MC , Unicredit CRDI.MI , ING INGA.AS , and BNP Paribas BNPP.PA .

Oil storage and distribution firm Rubis RUBF.PA fell 10.6 percent after issues with its Iran and Turkey operations bruised first-half profit.

U.S. sanctions against Iran forced Rubis to find a buyer for a recent acquisition in Iran, leading to a 15 million euro writeoff, while the firm's oil storage facility in Ceyhan, Turkey, also underperformed due to political tensions there, Berenberg analysts said. meal delivery firm Delivery Hero DHER.DE also fell 3.2 percent after its first-half results. tyre maker Michelin MICP.PA rose 3.6 percent after it confirmed its 2018 financial outlook, saying signs of growth in Europe and North America would offset a slowdown in China. ADYEN.AS shares fell 12 percent after the company placed 2.46 billion shares. the Bank of England and the ECB kept rates on hold, in line with market expectations.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Lower euro zone banks earnings estimates



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