By Emily Horton

Stoxx 600 headed for nearly 2% gain for the week

European markets joined a global stock rally Friday, after a report that the U.S. may reduce tariffs on Chinese imports raised investor hopes that the two countries will resolve their long-running trade debate.

An upbeat forecast from heavyweight miner Rio Tinto PLC drove gains for the mining sector.

How are the markets trading?

All of Europe's major indexes were up Friday with the Stoxx Europe 600 jumping 1.4% to 355.85, after making slight positive increases on Thursday -- marking the forth consecutive day of gains for the Stoxx 600 and a 1.9% gain for the week so far.

Leading the regional indexes higher, Germany's DAX 30 jumped 1.9% to 11,122.49, France's CAC 40 added 1.6% to 4,870.73, the FTSE 100 Index gained 1.6% to 6,946.31 and Italy's FTSE MIB rose 1.1% to 19,688.20.

The British pound was under pressure, dropping to $1.2938 from $1.2986 late in New York on Thursday.

The euro rose to $1.1404 from $1.1392.

What's driving the markets?

U.S. officials are debating ratcheting back tariffs on Chinese imports as a way to calm markets (http://www.marketwatch.com/story/us-mulls-easing-tariffs-against-china-in-order-to-calm-markets-pave-way-for-deal-2019-01-17) and give Beijing an incentive to make deeper concessions in a trade battle that has rattled global economies.

(http://www.marketwatch.com/story/us-mulls-easing-tariffs-against-china-in-order-to-calm-markets-pave-way-for-deal-2019-01-17)According to the report in The Wall Street Journal, Treasury Secretary Steven Mnuchin is willing to roll back U.S. tariff hikes on Chinese goods, but chief trade negotiator Robert Lighthizer was lukewarm over the proposal. And a source said that no big decisions have yet big taken.

In the U.K., lawmakers have come to a political deadlock over the Plan B Brexit agreement, as Prime Minister Theresa and leader of the opposition Jeremy Corbyn entered a gridlock over their competing visions for Britain to leave the European Union on Thursday, Reuters reported (https://uk.reuters.com/article/uk-britain-eu/uk-in-deadlock-over-brexit-plan-b-as-may-and-corbyn-tussle-idUKKCN1PB0M6).

Brexit Brief:General election talk grows louder in Westminster (http://www.marketwatch.com/story/brexit-brief-general-election-talk-grows-louder-in-westminster-2019-01-18)

What stocks are active?

Telecom Italia SpA (TIT.MI) led Europe's stock losers on Friday, dropping 7% after it warned over 2018 earnings (http://www.marketwatch.com/story/telecom-italia-warns-of-lower-2018-earnings-2019-01-18).

Ryanair Holdings PLC lost 1.2% after it lowered its full profit guidance on Friday (http://www.marketwatch.com/story/ryanair-cuts-2019-profit-view-on-low-winter-fares-2019-01-18), citing lower winter fares for the reason behind the warning. This news hit other airlines, with easyJet PLC (EZJ.LN) losing nearly 3%.

French car marker Renault SA (RNO.FR) gained 1%, after it announced that vehicle sales in 2018 rose by more than 3% (http://www.marketwatch.com/story/renault-2018-sales-up-on-china-brand-integration-2019-01-18), driven partly by the integration of Chinese brands Jinbei and Huasong.

Heavyweight miner Rio Tinto's (RIO.LN)rise in exports forecast (http://www.marketwatch.com/story/rio-tinto-sees-further-rise-in-exports-this-year-2019-01-18), led to a 0.9% increase in the company's stocks and pushed up other European miners. Glencore PLC (GLEN.LN) jumped by 2.7%, but Fresnillo PLC (FRES.LN) fell 1.3% as gold prices fell.

 

(END) Dow Jones Newswires

January 18, 2019 08:35 ET (13:35 GMT)

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