European stocks climb as bond yields move off record lows and China boosts exports

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European markets climbed on Thursday after a surprise boost in Chinese exports lifted global sentiment and bond yields moved off record lows.

The pan-European Stoxx 600 SXXP, +0.77% rose 0.9% and the DAX DAX, +0.74%lifted 0.7%, while the CAC PX1, +1.10% was the best-performing major index, climbing 1.1%.

The internationally exposed FTSE 100 UKX, +0.13%  failed to make the same gains as sterling GBPUSD, +0.0329%  bounced back 0.2% to $1.2165.

What’s moving the markets?

An unexpected rebound in Chinese exports in July, driven by the EU, boosted Asian markets overnight after U.S. stock markets closed higher.

Exports rose 3.3%, beating expectations of a 1% decline, but shipments to the U.S. fell 8% from the previous year.

The prospect of Chinese representatives visiting Washington for trade talks next month added extra support as European markets opened higher.

China’s central bank set the daily midpoint for the yuan below 7 per dollar, the weakest level since 2008, but markets were unmoved as it remained stronger than expectations.

Michael Hewson, chief market analyst at CMC Markets, said: “For this rebound to gain further momentum we would need to see evidence of a softening of the rhetoric around trade, and a willingness on the part of both parties to dial back their current positions.”

Yields on German bunds and U.K.10-year gilts slumped on Wednesday as central banks in Thailand, New Zealand and India cut rates more aggressively than expected, warning of a protracted global growth slowdown.

Bond yields moved off record lows on Thursday as investors, who had flocked to havens, returned to riskier assets.

Which stocks are active?

German industrial conglomerate Thyssenkrupp TKA, +3.04%   climbed 3% despite trimming its full-year outlook and reporting a third-quarter loss. The weak results had already been priced in following a recent profit warning, the fourth of chief executive Guido Kerkhoff’s tenure.

Drinks bottler Coca-Cola HBC CCH, -4.35%  declined 3.6% as operating profit fell 4.9% to €288.9 million ($323.8 million) in the first half of 2019. The company blamed unseasonably cold and wet weather in Europe earlier this year as it fell short of its own estimates of €319.8 million operating profit.

Sportswear group Adidas ADS, -1.70%  slipped 1.6% after second-quarter sales fell short of expectations. Sales grew 4% to €5.51 billion but were flat in Europe.

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