European stock markets rebound on China-US talk hopes
London. Eurozone equity markets rebounded on Thursday, and London extended gains on positive sentiment surrounding US-China trade talks, while the pound steadied after a Brexit-fuelled slump.
"European stock markets are higher... as there are positive noises coming out of China in relation to the trade situation," said David Madden, analyst at traders CMC Markets UK.
"US-China relations have been volatile recently, but for now there is a sense that things are heading in the right direction, and that has coaxed some traders back into the market."
Investors are mulling the significance of a fall in the yield, or interest rate, on 10-year US bonds, which has recently dropped below that for two-year Treasury notes -- often seen a pointer to recession.
Yields on 30-year government paper have touched a fresh all-time low meanwhile as investors bet on longer-term economic weakness.
It comes against a backdrop of slowing global growth and uncertainty about the Federal Reserve's plans for cutting interest rates to support the US economy.
In foreign exchange, the pound was stable a day after it fell on UK Prime Minister Boris Johnson's shock decision to bring an end to the parliamentary year and not restart it until mid-October.
While he said the extended recess was to draw up a full legislative programme, anti-Brexiters are fuming that it will cut short any time they could have to debate a plan to avert a no-deal divorce from the EU on October 31, with some calling it a "coup".
Johnson could now face a vote of no confidence, which could lead to a British general election and continued uncertainty for the already struggling economy.
Meanwhile, shares in British software maker Micro Focus slumped after it issued a profit-warning and launched a strategic review of operations, blaming weak demand in a "deteriorating macro environment".
Micro Focus slumped almost 29 percent to stand at £11.07 in afternoon trading on London's benchmark FTSE 100 index.
