EUROPE MARKETS: European Stocks Climb, With French Market Higher After Parliamentary Elections
19 June 2017 - 7:44PM
Dow Jones News
By Carla Mozee, MarketWatch
Brexit talks starting in Brussels
Stocks across Europe leapt Monday, with French shares rising by
the most in more than a month after French President Emmanuel
Macron's upstart party scored a majority in parliamentary elections
on Sunday.
The Stoxx Europe 600 climbed 0.8% to 391.51. All sectors gained
ground, led by industrial, oil and gas and basic materials
stocks.
Among top gainers, Royal Philips NV (PHG) surged 5.8% after The
Times reported that hedge fund Third Point, led by manager Dan
Loeb, has been buying shares in the Dutch electronics and
healthcare heavyweight
(https://www.thetimes.co.uk/article/activist-fund-set-to-shake-up-philips-m2sjp7bkm).
The move spurred speculation Loeb is aiming to shake up the
business.
Ocado Group PLC (OCDO.LN) was also among the best performers,
rising 7% as the British online grocery company is considered a
takeover target following Amazon.com Inc. (AMZN) deal announced
Friday to buy Whole Foods Market Inc
(http://www.marketwatch.com/story/amazon-to-buy-whole-foods-for-137-billion-2017-06-16-91035726).(WFM).
The euro was buying $1.1198, steady from Friday's trade in New York.
France: In Paris, the CAC 40 index tacked on 1% to 5,316.01, on
track for its biggest rise since May 5, FactSet data showed. The
move came after Macron's La République en Marche party and its
centrist ally won 350 of the 577 seats in the National Assembly
(http://www.marketwatch.com/story/macrons-party-on-track-for-dominant-win-in-french-parliament-2017-06-18)
in the final round of voting on Sunday.
"We expect [Macron] to begin with the least popular reforms in
the next 100 days to show Europe that France is back," wrote ING
economist Julien Manceaux in a research note. "This should continue
to support business confidence and help GDP growth to accelerate in
the second half of the year to reach 1.7% in 2018 after a still
weak (1.3%) 2017."
"However, with a record low voter turnout, the mandate for
reform is not extremely strong for Mr. Macron who could hence
endure strong civil opposition, especially to his labor and pension
reforms," Manceaux added.
Only two shares on the CAC 40 were moving lower. Media firm
Vivendi SA (VIV.FR) shed 0.2% and oil services provider TechnipFMC
PLC (FTI.FR) fell 0.4%. At the top of the index were shares of
industrial engineering equipment company Schneider Electric SE
(SU.FR) as they rose 2.1%.
Indexes: Germany's DAX 30 popped up 1% to 12,876.22, on track
for a record close. The U.K.'s FTSE 100 claimed a 0.6% rise to
7,511.52.
(http://www.marketwatch.com/story/ftse-100-rises-with-retailers-in-recovery-mode-2017-06-19)British
officials are in Brussels to begin over Britain's exit from the
European Union, or Brexit, nearly a year after the U.K. voted to
leave the EU in a referendum.
No Brexit deal for the U.K. would be a "very, very bad outcome,"
U.K. Treasury chief Philip Hammond said on BBC1's "The Andrew Marr
Show" show on Sunday. Britain will exit the European Union's single
market, but an agreement for a smooth transition would be ideal, he
said.
Financial markets were stable following initial reports of a
"major incident"
(http://www.marketwatch.com/story/one-dead-several-injured-after-car-rams-crowd-in-finsbury-park-london-2017-06-19)
in London involving a van being driven into a crowd of people,
resulting in one death and several casualties.
Among decliners on the Stoxx 600, shares of Mediaset Espana
Comunicacion SA (TL5.MC) fell 3.3% and Polymetal International PLC
(POLY.LN) lost 2.5%.
(END) Dow Jones Newswires
June 19, 2017 05:29 ET (09:29 GMT)
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