Mining, healthcare prop up European shares; US-EU trade talks in focus

Reuters
07-10
UPDATE 2-Mining, healthcare prop up European shares; US-EU trade talks in focus

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Britain's FTSE 100 hits record high

European mining stocks hit over three-month high

Barry Callebaut falls after another forecast cut

Updates after markets close

By Sanchayaita Roy, Sukriti Gupta and Shashwat Chauhan

July 10 (Reuters) - European shares closed higher on Thursday, with mining and healthcare stocks the biggest boosts as investors watched for signs of progress on a potential trade deal between the United States and the European Union.

The pan-European STOXX 600 index .STOXX closed 0.5% higher, hitting its highest since June 11.

In the UK, the blue-chip FTSE 100 .FTSE jumped 1.2% to an all-time high, while Germany's DAX .GDAX came off its record high to end 0.4% lower.

European Commission President Ursula von der Leyen said the EU is working "non-stop" to reach a low-tariff trade agreement with the U.S.

EU trade chief Maros Sefcovic said on Wednesday that good progress has been made on a framework trade agreement, and a deal may be possible within days.

The negotiators are also discussing potential measures to protect the EU auto industry, according to officials and auto industry sources.

European auto stocks .SXAP climbed 2%, with shares of Germany's BMW BMWG.DE up 4.2% after the automaker held a well-received pre-close earnings call.

"The frequency of tariff-related news is on the rise again, and this crescendo of trade influences is likely to persist in the coming days, impacting markets directly affected by these developments," Jochen Stanzl, chief market analyst at CMC Markets, said.

U.S. President Donald Trump announced a new 50% tariff on copper imports and a 50% duty on goods from Brazil on Wednesday, both effective August 1.

European mining stocks .SXPP jumped 3.2% to a more than three-month high, with London-listed shares of Glencore GLEN.L and Rio Tinto RIO.L advancing about 4% each.

Heavyweight healthcare stocks .SXDP also gained 1.8%, with Danish drugmaker Novo Nordisk NOVOb.CO up 2.8%.

The stocks reeling on Thursday were mostly banks, with a gauge for euro zone lenders .SX7E down 1.6%, though still hovering near its highest level since 2010.

At the bottom of the STOXX 600 was Barry Callebaut BARN.S, down 13.4% after the Swiss chocolate maker cut its volume outlook for the third time this year.

Grafton GFTU_u.L shed 6.1% after the building materials distributor and DIY retailer said it is not expecting a "significant" increase in volumes this year.

In contrast, Aalberts AALB.AS rose 7.1% after the Dutch industrial group agreed to acquire Grand Venture Technology GRAN.SI.

Investors are now bracing for the second-quarter earnings season to assess how companies are navigating trade volatility.

The world's biggest supplier of computer chip-making equipment, ASML ASML.AS, will be the first of the European heavyweights to report earnings next week.

(Reporting by Sanchayaita Roy, Sukriti Gupta and Shashwat Chauhan in Bengaluru; Editing by Sherry Jacob-Phillips and Andrew Heavens)

((Sanchayaita.Roy@thomsonreuters.com; Shashwat.Chauhan@thomsonreuters.com))

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