European Shares Extend Gains On M&A News
(RTTNews.com) - European stocks were broadly higher on Monday, with underlying sentiment supported by upbeat U.S. jobs data, easing of political tensions in Italy and Spain and fresh deal-making news.
On the data front, Eurozone investor sentiment deteriorated sharply in June largely reflecting political uncertainties in Italy, survey data from think tank Sentix showed.
The investor confidence index slid to 9.3 from 19.2 in May. This was the lowest score since October 2016 and below the expected level of 19.0.
U.K. construction activity growth remained stable in May, survey data from IHS Markit and Chartered Institute of Procurement & Supply showed. The corresponding index held steady at 52.5 while economists expected it to drop to 51.8.
The pan-European Stoxx Europe 600 index was up over 1 percent at 386.91 in late opening deals after climbing 1 percent on Friday.
The German DAX was moving up 0.3 percent, France's CAC 40 index was gaining 0.4 percent and the U.K.'s FTSE 100 was climbing 0.8 percent.
Compagnie Financiere Richemont gained about 1 percent. The Swiss luxury goods group said that it has completed the sale of its wholly-owned subsidiary, Lancel, a French luxury leather goods company, to Piquadro S.p.A., an Italian leather goods group.
Novartis rose half a percent after announcing positive results from the third Phase III trial of Kisqali.
UniCredit shares rose over 1 percent. According to the Financial Times, the Italian bank is considering a merger with France's Societe Generale. Shares of the latter jumped 2 percent.
DS Smith rallied 3.2 percent in London after it announced the proposed acquisition of Papeles y Cartones de Europa, S.A., known as Europac, a Western European integrated packaging business.
Lender CYBG gained about 1 percent after it launched a revised offer to buy challenger bank Virgin Money.
France's AccorHotels slumped 6.5 percent after it confirmed an interest in buying a minority stake in Air France-KLM. Shares of the latter jumped as much as 7 percent.
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