Pan-European share index hits four-year high as traders wait for progress on US-China trade deal
Pierre Veyret, technical analyst at trading platform ActivTrades has looked at the rally in European shares.
European markets are trading significantly higher, led by miners and the travel and leisure sector, despite a mixed trading session in Asia. Global sentiment remains bullish on stocks as investors look for further positive signs from the trade talks. Investors have already priced a trade deal in with many benchmarks around the world now hitting record prices and P/E ratio levels.
This could be a dangerous situation for bull traders if negotiations between Beijing and Washington slow down as many traders have already bought the rumour. Today, investors’ focus will be drawn to both US building permits data as well as the first televised leadership debate in the UK, prior to December’s general election.
Russ Mould, investment director at the UK stockbroker AJ Bell, says the move shows the aviation sector is under real pressure to address its environmental impact.
Regular fliers often fret about their carbon footprint so EasyJet’s move, at a significant but not unmanageable cost of £25m a year, could pay off. Well, at least if it is seen as a genuine strategy and not just window dressing.
The news comes hot on the heels of Wizz Air CEO Jozsef Varadi’s call for a ban on business class – the Hungarian-based outfit styles itself as Europe’s greenest airline.
Easyjet says it will become “world’s first major airline to operate net-zero carbon flights”. From today the airline will offset all of the CO2 emissions from its 329 aircraft by investing £25m pa in renewable projects. 85% of Easyjet’s carbon footprint is from burning jet fuel.
EasyJet claims 7M tons of CO2 can be offset with £25M. That’s £3.50 per ton.
Only direct air capture and geological storage can guarantee to lock up CO2 for the minimum 200 years required. This would cost £350 per ton.
Greenwash ratio: 100:1