European stocks pivoted higher midday Thursday trade, as concerns over a potential military conflict in Syria eased.
Earlier in the session, those fears were seen as keeping investors from making any big bets on the equity markets. But global stocks took a brighter tone after U.S. President Donald Trump tweeted that a military strike on the Middle Eastern country may not be imminent.
Meanwhile, minutes of the European Central Bank’s meeting also suggests the central bank will move only gradually to phase out its 30 billion-euro ($37.1 billion) a month bond-buying program and start raising interest rates.
What are markets doing?
The Stoxx Europe 600 index SXXP, +0.45% added 0.3% to reach 377.22, after logging a 0.6% loss on Wednesday.
Germany’s DAX 30 index DAX, +0.76% gained 0.4% to 12,351.09, while France’s CAC 40 PX1, +0.38% rose 0.2% to 5,289.46. But the U.K.’s FTSE 100 index UKX, +0.08% was flat at 7,255.05.
The euro EURUSD, -0.4851% fell to $1.2331 from $1.2369 late Wednesday in New York, while the pound GBPUSD, +0.0846% was higher at $1.4208, compared with $1.4178 on Wednesday.
What is driving the market?
Trump’s tweet gave some relief from the geopolitical concerns that had been weighing on markets since the U.S. president signaled on Wednesday that a missile attack on Syria was not far off.
Never said when an attack on Syria would take place. Could be very soon or not so soon at all! In any event, the United States, under my Administration, has done a great job of ridding the region of ISIS. Where is our “Thank you America?”
— Donald J. Trump (@realDonaldTrump) April 12, 2018
The possibility of a U.S. strike against Syrian President Bashar al-Assad has been growing since a suspected government-sanctioned chemical-weapons attack killed civilians in Damascus over the weekend. Russia has warned the U.S. not to launch an attack, saying it’ll shoot down any missiles.
Recent volatility on global stock markets has also been partly driven by escalating trade tensions between the U.S. and China. European Central Bank policy makers see trade wars as a risk to the eurozone’s economic recovery, minutes released Thursday showed.
Which stocks are in focus?
Shares in Norwegian Air Shuttle ASA NAS, +38.87% soared 38% after the parent company for British Airways, International Airlines Group S.A. IAG, -0.97% , said it may attempt a full takeover of the budget carrier. IAG’s stock traded down 0.6%.
Playtech PLC PTEC, +5.17% jumped 5% after the gambling-software company said it’ll buy Italian SNAITech SpA SNA, +14.58% for 846 million euros ($1.05 billion).
Man Group PLC EMG, +8.29% gained 8.1% after the U.K. asset manager said funds under management rose in the first quarter and that it plans to repurchase up to $100 million of its own shares.
Royal DSM NV DSM, +4.71% added 4.8% after the Dutch health, nutrition and materials group raised its full-year outlook.
Carrefour SA CA, -3.85% dropped 3.7%. The French supermarket chain said late Wednesday sales dropped in the first quarter of 2018 due to less-favorable markets in Europe.
GEA Group AG G1A, -6.63% slid 6.6% after the equipment provider said first-quarter operating profit will be lower than last year.
Outside the Stoxx 600, shares of Sulzer AG SUN, +10.37% rallied 11% after the Swiss engineering company confirmed it no longer faces the possibility of U.S. sanctions and that it is free to conduct business globally.
Carpetright PLC CPR, -12.28% tanked 16.5% after the retailer said it’ll close at least 92 stores to raise around £60 million as part of a “fundamental restructuring.”
Which economic data are in focus?
Industrial production in the eurozone fell for a third straight month in February, an indication that economic growth may be slowing in the region. Output was 0.8% lower than in January, compared with expectations for a 0.2% rise. It was the largest month-on-month drop since the end of 2016.
Germany’s economic upswing “softened a little” at the start of the year, as industrial turnover slipped slightly, the country’s economics ministry said.
—Karen Friar contributed to this article