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European markets mostly higher as fears over Irma, North Korea ease; UK inflation rises – CNBC

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Markets across the board got a boost on Tuesday after the U.S. insisted that it is not looking for war with North Korea, despite joining other members of the United Nations Security Council in unanimously agreeing to step up sanctions against the closed state.

Banks and financial services were among the top performing sectors in Europe, both up more than a percent. Investment manager Partners Group AG moved towards the top of the benchmark, up more than 4 percent, while Deutsche Bank, Commerzbank and Italy’s Banco BPM shifted higher, buoyed by the shifting sentiment.

Insurance stocks, too, moved higher by 0.7 percent as they began their recovery from Hurricane Irma. The storm, thought to be one of the most powerful ever to hit the Atlantic, was downgraded to a post-tropical cyclone on Tuesday by the U.S.’ National Hurricane Center and analysts have suggested that its economic impact might be slightly lower than previously anticipated.

The travel and leisure industry regained some ground later on in trade, despite facing criticism over its relief efforts for tourists in the wake of the storm. While the sector eked out gains, individual stocks, however, took a hit from a series of strikes in France over President Emmanuel Macron’s labor reforms. 20,000 Ryanair passengers had their flights canceled as a result of the strike, causing the stock to come under pressure during trade.

Looking at individual stocks, Swiss security firm Dormakaba shot to the top of the European benchmark after reporting a 9.4 percent increase in sales Tuesday. The stock pared some of its gains, but remained up over 8 percent in afternoon deals.

Construction company Ashtead Group also rose over 5 percent as it forecast increased demand following hurricanes Harvey and Irma.

Elsewhere, oil prices moved higher as traders looked to assess the damaging effects of the storms. At 3.00 p.m. London time, Brent oil was trading at $54.24 per barrel and U.S. crude hovered around $48.19.

U.K. inflation rises higher

U.K. inflation rose higher in August, hitting 2.9 percent, according to new data released by The Office for National Statistics Tuesday. The figures will add renewed pressure to the Bank of England, which will meet Thursday to make its latest monetary policy decision.

In afternoon trade, the U.K. pound was trading up against the likes of the euro and U.S. dollar.

Also in Britain, the U.K. government passed a major hurdle in Brexit negotiations Tuesday, receiving backing from British lawmakers in the first stage of its bid to extract the U.K. from EU law. Concerns around what Brexit will mean for business has weighed on various sectors as of late. On Tuesday, several U.K. property development firms traded in the red on Tuesday, including Hammerson, Land Securities and British Land.

Meanwhile, Norway’s conservative prime minister, Erna Solberg, and her right-wing coalition government claimed victory in the country’s general election Tuesday.

Looking ahead, investors will be keeping a watchful eye on U.S. tech giant Apple on Tuesday, as the company delivers its latest consumer products event. Consequently, the event took up attention on Wall Street, with stocks trading in the black on Tuesday.

Not a Scientific Survey. Results may not total 100% due to rounding.


European markets mostly higher as fears over Irma, North Korea ease; UK inflation rises – CNBC

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