17% rise in H&M shares is a positive for the European stock index, but the DAX ends lower

The main benchmark for European equities ended slightly higher on Monday as renewed trade concerns between the United States and China weighed on investors’ appetite for equities.

What are the markets doing?

The Stoxx Europe 600SXXP,
-0.13%
rose 0.1% to 378.31 after gaining 0.2% on Friday and gaining 1% last week.

DAX 30 German DAX,
-0.08%
closed down 0.2% at 12,096.41, while the French CAC 40 PX1,
-0.27%
closed less than 0.1% lower at 5,348.87. The UK’s FTSE 100 UKX,
-0.15%
also fell less than 0.1% to close at 7,302.10. Meanwhile, the Italian FTSE MIB I945,
-0.14%
jumped 1.1% to 21,111.40, marking the best daily gain in about a week.

EURUSD euro,
-0.52%
traded at $1.1673, down from $1.1622 on Friday night in New York. The GBPUSD pound,
-0.10%
jumped to $1.3128 from $1.3068.

What drives the market?

Trade tensions threatened to return on Monday, as China appeared poised to possibly refuse further U.S. trade talks if President Donald Trump went ahead with $200 billion in tariffs against Chinese goods.

Opinion:Why President Trump will continue to escalate the trade war with China past midterm

The pound rose as talks between the UK and Brussels remained the focus, with the first of three summits due to be held on Thursday in hopes of progress on the Brexit issue on the Irish border. A stronger pound may weigh on the FTSE 100 as the multinational companies in the index generate most of their sales in other currencies.

The International Monetary Fund warned on Monday that any “likely” Brexit outcomes “will entail costs for the UK economy”. And the UK Chamber of Commerce lowered its economic forecast on Monday.

Italian Economy Minister Giovanni Tria is expected to meet Prime Minister Guiseppe Conte on Monday to discuss efforts to bring the country’s budget deficit under control. A new budget is expected later this month.

Stock movers

Shares of heavyweight Stoxx 600 H&M Hennes & Mauritz AB HM.B,
-9.50%
jumped 16.6% after the company reported better-than-expected sales for the third quarter. An overhaul of its logistics infrastructure seems to be starting to bear fruit.

ArGEN-X SE ARGX,
-1.49%

ARGX,
+2.02%
ended down 0.5%, after jumping nearly 4% after the biotech company announced positive results for a treatment to help patients with autoimmune diseases. Stifel analysts had said the news should “de-risk” the business.

German management software group SAP SE SAP,
-1.39%

SAP,
+0.10%

SAP,
+0.33%
was a big loser for the Stoxx 600 and the German DAX 30 index, down 1.3%.