European Stocks Rise Ahead of Emergence of New UK PM

By Investors Hub

European stocks have risen on Monday as Italy’s fractious coalition partners geared up for a showdown to avoid the collapse of the government following a series of clashes.

Meanwhile, as hopes fade for aggressive Fed rate cuts in July, investors await the outcome of tomorrow’s U.K. leadership election and Thursday’s ECB meeting for further direction.

While the German DAX Index has climbed by 0.5 percent, the U.K.?s FTSE 100 Index and the French CAC 40 Index are both up by 0.3 percent.

Shares of Philips Electronics NV have soared in Amsterdam after the Dutch consumer electronics giant reported a significantly higher profit in its second quarter, reflecting a narrower loss from discontinued operations and higher sales.

Swiss private bank Julius Baer has also rallied. After reporting a drop in first-half profits, the bank said that client activity and asset valuations have recovered substantially compared to the second half of 2018.

Energy stocks have also jumped as oil prices rise on worries that Iran’s seizure of a British tanker last week may lead to supply disruptions in the energy-rich Gulf.

Metro Bank shares have also advanced after the troubled high street lender confirmed media reports it is in talks “regarding the potential sale of a loan portfolio”.

Ted Baker has also soared on a report that its founder Ray Kelvin could back a private equity buyout of the retailer, months after he resigned.

On a light day on the economic front, survey data from IHS Markit showed that British households’ expectations towards future finances remained positive in July.

The headline household finance index rose for the second straight month in July, to 44.3 from 43.9 in June. The score signaled the weakest level of pessimism among households towards their finances since January.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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