Primark store on London’s Oxford Street.
European stocks traded near four-year highs on Tuesday, with market attention still focused on the prospect of a U.S.-China trade deal.
After closing Monday at the highest level since Aug. 5, 2015, the Stoxx Europe 600 SXXP, +0.10% increased 0.02% to 403.50.
The S&P 500 SPX, +0.37% on Monday finished at a record high on hopes for a trade deal. U.S. officials are considering removing tariffs on $112 billion-worth of Chinese goods as a concession to seal a “phase one” trade deal, the Financial Times reported late on Monday. The 15% tariffs on items such as clothing, appliances and flat-screen monitors were put into effect on Sept. 1. U.S. stock futures ES00, +0.28% edged higher on Tuesday.
Meanwhile European earnings season continues, with results through Monday on track for a 4.6% year-on-year decline in the third quarter, according to Morgan Stanley.
Associated British Foods ABF, +4.98% rose 5% as the company reported a 2% rise in adjusted pretax profit for the year and said operating margins at its fast fashion retailer Primark will have a small drop. The U.S. expansion of Primark will continue as the company has signed a lease in Philadelphia.
Siemens Gamesa Renewable Energy SGRE, -9.07% plunged 9% as the turbine maker guided for lower-than-forecast revenue and margins in what the company called a “transitional” year. The company also said it would cut 600 white-collar jobs.
Jewelry retailer Pandora PNDORA, -13.48% shares stumbled 11% after reporting worse operating profit and revenue than forecast. Same-store sales excluding Hong Kong fell 10% in the third quarter.