European Markets Climb After Germany Reaches Migration Deal

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BRUSSELS/FRANKFURT/PARIS (Alliance News) – European markets ended Tuesday’s session in the green, as investors breathed a sigh of relief after German Chancellor Angela Merkel and her coalition partners reached a compromise deal to end a dispute over immigration.

The pan-European Stoxx Europe 600 index advanced 0.79%. The Euro Stoxx 50 index of eurozone bluechip stocks increased 1.01%, while the Stoxx Europe 50 index, which includes some major UK companies, added 0.87%.

The DAX of Germany climbed 0.91% and the CAC of France rose 0.76%. The FTSE 100 of the UK gained 0.60% and the SMI of Switzerland finished higher by 1.12%.

In Paris, Societe Generale climbed 0.58% after it agreed to acquire Commerzbank’s Equity Markets & Commodities business. Shares of Commerzbank advanced 0.56% in Frankfurt.

Sanofi rallied 1.76% after closing a strategic transaction with Evotec to integrate its infectious disease unit including licensing-in the majority of Sanofi’s infectious disease research portfolio.

In London, Paragon Banking Group rose 8.74% after it acquired the entire share capital of Titlestone Property Finance Ltd for GBP48 million.

Glencore, which is facing US money laundering probe, tumbled 8.10%.

McBride dropped 5.15%. The manufacturer of Co-manufactured and Private Label products announced that it now expects full year adjusted profit before tax to be marginally below the lower end of analyst expectations, following weaker than expected sales levels in May and June 2018.

Iron ore pellet producer Ferrexpo fell 1.20% after its total pellet production for the first-half of 2018 declined 1.2% to 5.10 million tons, from 5.16 million tons in the previous year, reflecting a planned 65 day pellet line refurbishment.

BE Semiconductor Industries NV sank 8.85% in Amsterdam after the manufacturer of assembly equipment for the semiconductor industry trimmed its sequential growth forecast for second-quarter revenues.

Eurozone retail sales remained unchanged in May as the increase in food sales was offset by a decline in non-food products turnover, data from Eurostat showed Tuesday. Sales were expected to gain 0.1%, reversing a 0.1% fall logged in April.

Eurozone producer price inflation accelerated in May to the highest level in twelve months, Eurostat reported Tuesday. Industrial producer prices climbed 3.0% year-over-year in May, faster than the 1.9% rise in April.

The UK construction output grew at the fastest pace in seven months in June, survey data from IHS Markit and Chartered Institute of Procurement & Supply showed Tuesday.

The construction Purchasing Managers’ Index rose to 53.1 in June from 52.5 in May. The latest reading pointed to the sharpest rise in construction output since November 2017.

New orders for US manufactured goods unexpectedly rebounded in the month of May, according to a report released by the Commerce Department on Tuesday. The Commerce Department said factory orders climbed by 0.4% in May after falling by a revised 0.4% in April.

Economists had expected orders to come in unchanged compared to the 0.8% decrease originally reported for the previous month.

Source: http://www.lse.co.uk/AllNews.asp?code=2x3qw2om&headline=European_Markets_Climb_After_Germany_Reaches_Migration_Deal