European Stocks Rise Sharply as Fiat Chrysler, Renault Merger Talks Gain Traction

By Investors Hub

European stocks have moved sharply higher on Wednesday, with automakers leading the surge on reports that merger talks between Fiat Chrysler Automobiles and Renault have gained traction.

Investors have also cheered media reports suggesting the German government has agreed to a draft law largely scrapping the so-called “Solidarity Surcharge” on income tax to shore up Europe’s largest economy.

Elsewhere, Giuseppe Conte resigned as Italian Prime Minister, passing the baton over to President Sergio Mattarella to decide whether to call new elections or ask parties to form a new government. Italian bonds breathed a sigh of relief despite the political upheaval in the country.

While the French CAC 40 Index has surged up by 1.6 percent, the German DAX Index and the U.K.?s FTSE 100 Index are up by 1.3 percent and 1.2 percent, respectively.

Fiat Chrysler and Renault shares have moved sharply higher, while German carmakers BMW, Daimler and Volkswagen are also seeing notable strength.

Danish jewelry group Pandora A/S has also spiked to extend gains from the previous session after backing its full-year guidance.

Hammerson has also advanced after the British property development and investment company appointed James Lenton as CFO and Executive Director.

Capita is also posting a standout gain on the day after brokerage Goldman Sachs upgraded its rating on the stock to Buy.

In economic news, the U.K. budget balance showed a surplus in July, figures from the Office for National Statistics showed.

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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