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European shares at record high as cross-Atlantic trade tensions abate

European shares hit a record high on Friday (January 17).

Investors cheered by positive talks between the EU and U.S.

EU Trade Commissioner Phil Hogan said he had a good exchange of views with U.S. Trade Rep Robert Lighthizer in Washington.

The meeting is a step forward on long-standing issues like the French digital tax and aircraft subsidies.

Cazenove Capital Global Economist Janet Mui:

(SOUNDBITE) (English) CAZENOVE CAPITAL GLOBAL ECONOMIST, JANET MUI, SAYING:

"We're having an election year this year. We think that President Trump is very unlikely to reignite any global trade tension that would include the EU. So, I mean, there's always a risk but we think that further escalation of trade tension between the EU and U.S. is very unlikely."

The pan European STOXX 600 rose almost 1% to a record high of 423.80.

EU and U.S. talks and hopes of higher demand from China in 2020 excited markets.

The trade sensitive miners index was the best performer of the day.

The world's largest miner BHP Group - a major Chinese supplier - rose 1.2%.

German stocks were also up 0.7%.

Germany's export-reliant economy would gain from any easing trade tensions.