EUROPE MARKETS: European Stocks Higher After EU Elections; Fiat, Renault Climb On Merger Proposal
May 27 2019 - 6:23AM
Dow Jones News
By Barbara Kollmeyer, MarketWatch
Greek stock soar as PM's party defeated in EU elections
European stock markets traded higher on Monday, driven in part
by relief that euro skeptic parties did not advance as expected in
EU Parliamentary elections, while autos were also gaining after
Fiat Chrysler and Renault finally confirmed merger talks.
London and U.S. markets will close on Monday for public
holidays, something that is likely to keep volumes pinned down in
Europe.
How are markets performing?
The Stoxx 600 rose 0.2% to 376.78, after closing down 1.47% last
week.
In Germany, the DAX (DAX) rose 0.3% to 12,052.92, following a
1.9% gain last week.
France's CAC 40 was up 0.2% to 5,326.14, after dropping 2.2%
last week.
Italy's FTSE MIB climbed 0.7% to 20,520.01.
The euro was flat at $1.1195 after finishing at $1.1208 on
Friday. The pound was flat at $1.2702, having ended Friday at
$1.2711.
What's moving the markets?
Elections for the European Parliament were held in the European
Union's 28 countries from Thursday through Sunda. Exit polls showed
pro-EU parties won the majority, albeit with shrinking support,
though euroskeptic parties did not walk away with as many victories
as expected
(http://www.marketwatch.com/story/centrists-lose-ground-to-far-right-and-green-parties-in-european-elections-2019-05-26).
In short, center-right and left groups that have controlled
European politics for years, saw their majority slip away, and will
now need to form coalitions with business-friendly centrists. Greek
Prime Minister Alexis Tsipras called for an early national
elections
(http://www.marketwatch.com/story/eu-elections-greek-prime-minister-calls-for-snap-vote-after-partys-loss-2019-05-26)
after his party suffered heavy defeats in EU elections, news that
sent Greece stocks soaring nearly 5%.
A lack of trading in the U.S. and the U.K. was likely to keep
action to a minimum.
U.S. stocks closed higher Friday
(http://www.marketwatch.com/story/us-stock-futures-rise-on-signs-trump-administration-could-soften-huawei-stance-2019-05-24)
ahead of the long weekend as trade-war fears receded somewhat
following reports President Donald Trump may ease restrictions
against Huawei Technologies Inc. as part of a bigger trade deal
with China. But the Dow Jones Industrial Average fell a
fifth-straight week, logging its longest weekly losing streak on
record.
What stocks are moving?
Auto stocks were among the big gainers, with Renault (RNO.FR)
soaring 14% after Fiat Chrysler (FCA.MI) (FCA.MI) unveiled a merger
proposal with the French group that would create the world's
third-largest car maker by production
(http://www.marketwatch.com/story/renault-fiat-chrysler-surge-on-merger-proposal-2019-05-27).
(http://www.marketwatch.com/story/renault-fiat-chrysler-surge-on-merger-proposal-2019-05-27)
Fiat shares rose 10%.
The news boosted auto shares across the board, with Daimler AG
(DAI.XE) rose 0.5% and Volkswagen AG (VOW3.XE) jumped 1.3%.
Elsewhere, pharmaceutical shares were also higher, with
heavyweight Novartis AG (NOVN.EB) climbing 1.8% and Sanofi SA
(SAN.FR) (SAN.FR) up over 1%.
Major oil companies also contributed to the positive tone, with
Total SA (FP.FR) (FP.FR) climbed 1.3% and Royal Dutch Shell PLC
(RDSA.LN)(RDSA.LN) rose 0.8%.
(END) Dow Jones Newswires
May 27, 2019 06:08 ET (10:08 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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