Trade optimism lifts European stocks to new four-year high

European stocks rose on Thursday for a fifth straight session, getting a boost from a report about the U.S. and China agreeing on how they would remove tariffs.

After closing on Wednesday at the highest level since July 20, 2015, the Stoxx Europe 600  added 0.38% to 406.59.

The German DAX  added 0.78% to 13282.39, the French CAC 40  added 0.28% to 5883.33 and the U.K. FTSE 100  gained 0.36% to 7423.35.

Thursday’s rise occurred after a report in Bloomberg News cited a spokesman from China’s Ministry of Commerce as saying that in so-called phase-one deals, both sides will roll back tariffs in the same proportion. U.S. stock futures  also advanced on the report.

Vestas Wind Systems  shares jumped 10.7% after reporting a 70% increase in profit on a 30% increase in revenue during the third quarter. Order intake at the turbine maker beat analyst expectations by a third.

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ArcelorMittal  rose 5.7% as the steelmaker’s 32% slump in third-quarter Ebitda on lower shipments of steel and iron ore nonetheless beat expectations.

Lloyd’s of London underwriter Hiscox shares dropped 11%. Analysts at Jefferies said after meeting management that they were left with “the distinct impression that Hiscox is preparing for a casualty catastrophe, the likes of which haven’t been seen since the turn of the century.” The insurer earlier in the week said its U.S. business has seen dramatic increases in jury awards and defense costs.

Commerzbank slumped 3.7% as the German lender, which had previously reported the outlines of its third-quarter results, said it now expects to report a fall in profit for the year. The bank said the uncertain macroeconomic environment, as well as the European Central Bank’s easing in September, was weighing on profitability.

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