European stocks rise, with Germany finding relief in Merkel’s migration deal

  • Written by MarketWatch
  • Published in Economics

European stocks rose Tuesday, with German stocks climbing after German Chancellor Angela Merkel steered her coalition government away from immediate collapse by reaching an agreement over migration.

How markets are moving

The Stoxx Europe 600 index SXXP, +0.72%[1]  rose 0.4% to 378.25. All sectors gained ground, topped by the tech and telecom sectors. The pan-European benchmark on Monday fell 0.8%[2].

Germany’s DAX 30 index DAX, +1.05%[3]  climbed 0.7% to 12,327.82. It lost 0.6% in the previous session and tilted toward entering correction territory.

France’s CAC 40 index PX1, +0.90%[4] gained 0.3% to 5,292.35. The U.K.’s FTSE 100 index UKX, +0.32%[5]  was up 0.1% to 7,554.37, while Spain’s IBEX 35 IBEX, +1.04%[6]  rose 0.1% to reach 9,559.40.

The euro EURUSD, +0.1632%[7] traded at $1.1645, little changed from $1.1641 late Monday in New York.

What’s driving the market

German blue-chips outperformed most other European benchmarks, finding relief after German Chancellor Merkel and her Interior Minister Horst Seehofer reached a last-minute agreement late Monday for tighter control over immigration[8]. Merkel said the deal is a “really good compromise” that should help regulate movement of asylum seekers within the European Union without creating tensions with Germany’s neighbors.

Merkel’s disagreement with her coalition partner threatened to lead to the collapse of her government, which is a partnership between her Christian Democrats (CDU), Seehofer’s Christian Social Union (CSU) and the Social Democrats (SPD). There may still be a risk, as the SPD is expected to meet Tuesday to discuss whether it approves of the migration agreement.

Check out: Germany’s clash over immigration matters for markets — here’s why[9]

Markets overall appeared for now to set aside turmoil surrounding the U.S. and its dissatisfaction over global trade relationships. The European Union has threatened $300 billion[10] in fresh tariffs against U.S. products if U.S. President Donald Trump follows through on levies...

Read more from our friends at MarketWatch