European Stocks Appreciate as Political Tensions Ease in Spain, Italy

By Investors Hub

European stocks are 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.

While the U.K.?s FTSE 100 Index has climbed by 0.6 percent, the French CAC 40 Index is up by 0.3 percent and the German DAX Index is up by 0.2 percent.

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 in June 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.

Compagnie Financiere Richemont has shown a notable move to the upside. 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.

UniCredit shares have also moved higher. According to the Financial Times, the Italian bank is considering a merger with France’s Societe Generale.

DS Smith has also rallied after announcing the proposed acquisition of Papeles y Cartones de Europa, S.A., known as Europac, a Western European integrated packaging business.

Lender CYBG has gained about 1 percent after it launched a revised offer to buy challenger bank Virgin Money.

On the other hand, France’s AccorHotels has slumped after confirming an interest in buying a minority stake in Air France-KLM.