Left Menu
Development News Edition

European stocks rise by 1.3 pct after US-Huawei-deal talk outweighs trade anxiety

Devdiscourse News Desk | London | Updated: 16-05-2019 23:40 IST | Created: 16-05-2019 22:28 IST
European stocks rise by 1.3 pct after US-Huawei-deal talk outweighs trade anxiety
Lighting group Osram Licht gained 5.3% to 28.80 euros after it said that talks with Bain and Carlyle were continuing.

On Thursday, European shares reversed course to end in positive territory, with deal-making news in Germany helping to prop up the pan-European benchmark as it overcame fears of an escalation in the U.S.-China trade war.

The STOXX 600 index rose 1.3% to a 10-day closing peak after shrugging off early weakness triggered by the White House imposing severe sanctions on Chinese telecoms giant Huawei late on Wednesday. Rabobank market economist Stefan Koopman said that U.S.-China tensions have already been priced in and markets are more focused on the trade situation between Europe and the United States.

The latest Huawei sanctions helped rivals Ericsson and Nokia to advance by 2.1% and 4.1% respectively. Paris-traded stocks rose 1.4%, matched by the Milan benchmark while London-listed equities firmed by 0.8%.

Germany's DAX jumped by 1.7% for a third consecutive daily gain, though tariff-sensitive automotive shares did not contribute. The gains in Frankfurt were mainly driven by news of corporate deals. Thyssenkrupp soared with a 9.4% advance after Reuters reported that Finland's Kone might bid for the German group's elevator division. Kone shares added 5%.

Lighting group Osram Licht gained 5.3% to 28.80 euros after it said that talks with Bain and Carlyle were continuing. German magazine Boerse Online said the private equity groups could bid with an offer price of 35 euros per share. Basic materials stocks rose by 1.6%, with Norsk Hydro up 4.9% after a Brazilian federal court lifted one of two production embargoes on a plant owned by the Norwegian metals producer.

Nestle SA was up 1.8% at a record closing high. The Swiss group said it entered exclusive talks to sell its skin health business to a consortium led by private equity firm EQT Partners in a deal worth 10.2 billion Swiss francs ($10.1 billion). If it goes through, the deal will be the second-largest private equity-backed deal in Europe since the financial crisis, Refinitiv data shows, and comes as the food group shifts its portfolio in response to changing consumer demands.

Automakers and their suppliers fared less well, shedding 0.5% after the previous session's 2% gain. French video games group Ubisoft Entertainment, meanwhile, slumped by 12.7% after fourth-quarter results missed market forecasts. ($1 = 1.0097 Swiss francs) (Reporting by Medha Singh and Aaron Saldanha in Bengaluru Editing by David Goodman)


TRENDING

OPINION / BLOG / INTERVIEW

Domestic seafood trade in focus as COVID-19 changes market dynamics

As predicted earlier in a report titled Seafood industry post-COVID 19 An overhaul to trigger the growth of small fisheries, one of the changes going ahead would be increased focus on domestic seafood trade, driven by falling exports and su...

Migration post-COVID 19: Taking cues from the past to rebuild economies

Migrants are an irreplaceable part of even the essential workforce of developed countries and are on the frontline in the fight against the crisis, making an immeasurable contribution to saving the lives of natives with voting rights....

Socialization Post-COVID-19: Local associations and online groups to play crucial role

Though every age group is suffering due to the global lockdown caused by the ensuing COVID-19 pandemic, the challenges before adolescents are unique. Their social space has shrunk drastically, besides, they have become highly vulnerable to ...

Pharma post-COVID 19: Reducing political clout can alter business models

Powerful governments that have historically supported the pharma industry in enforcing global intellectual property rules are changing course and introducing legislation that can override normal patent rights during emergencies....

Videos

Latest News

Sport-On this day... May 26

ON THIS DAY -- MAY 26 SOCCER - Arsenals Michael Thomas and David Rocastle hold up the first division trophy following a 2-0 win over fellow title contenders Liverpool at Anfield on the last day of the 1988-89 league season.Victory ended Ar...

PM Modi condoles death of hockey legend Balbir Singh Sr

Prime Minister Narendra Modi on Monday condoled the death of hockey icon Balbir Singh Sr, saying that he was not only a brilliant player but also left a mark as a mentor. The legendary center-forward, who won three Olympic gold medals in hi...

Reuters Sports News Summary

Following is a summary of current sports news briefs. Keselowski wins NASCARs longest raceBrad Keselowski won the Coca Cola 600 in a shootout on Sunday as NASCAR did its best to fill the sporting void created by the novel coronavirus shutdo...

Question in Goa Board's Class 10 English exam stokes row

A question in the Goa Boards Class 10 English exam paper has stirred controversy as it allegedly portrays the state government in poor light and refers to corruption in recruitment. The ruling BJP has demanded action in the matter, while th...

Give Feedback