Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European shares back in black after telecoms surge

Stock MarketsJun 13, 2019 04:57AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The German share price index DAX graph at the stock exchange in Frankfurt

By Amy Caren Daniel and Medha Singh

(Reuters) - A surge in telecom stocks on Germany's completion of its 5G mobile spectrum auction pulled European shares higher on Thursday, overturning a weak opening as investors continued to worry about global trade tensions.

Shares in 1&1 Drillisch and parent United Internet surged 9% and 5% respectively while market leader Deutsche Telekom (DE:DTEGn) gained 1% even as chief Dirk Woessner said the process had led to high prices and left a "bitter aftertaste".

The moves drove the European telecom index 0.6% higher and, allied to gains for oil companies after a surge in crude prices, pulled the pan-European STOXX 600 index 0.16% higher by 0815 GMT.

Germany's DAX also outperformed with a 0.4% rise.

"Focus will now switch to whether Drillisch will proceed with a mobile network build, but it could be several months before the outcome is known," UBS analysts said in a note on the tender.

"We re-iterate our view that both Deutsche and Vodafone (LON:VOD) are well placed regardless of whether a mobile network build does or does not go ahead."

Europe's benchmark index has risen about 3% this month, undoing roughly half of a sell-off in May that was its worst monthly performance in more than two years.

The recovery has come largely on hopes that the U.S. Federal Reserve and European Central Bank will take action to impede any slowdown in global growth in the wake of the trade tensions that have plagued markets and major economies over the past year.

U.S. inflation data on Wednesday raised the number of Federal Reserve rate cuts priced in to the money market to three this year and some analysts worry that is overdone.

Germany's final inflation reading for May came in line with estimates on Thursday and banking stocks, which tend to suffer when expectations for interest rates fall, fell 0.4%.

"The expectations that central banks would intervene and might cut rates and start stimulating again, acts as a sort of buffer," said Teeuwe Mevissen, senior macro strategist at Rabobank.

The biggest decliner on STOXX 600 was Aurubis AG, down 10.8% % after Europe's largest copper producer warned on profits and said its CEO would leave the company immediately.

Thales rose 2.5% after the French defense electronics group raised its profitability target for 2019 as it factored in the contribution of the recently-acquired Gemalto (AS:GTO) business.

European shares back in black after telecoms surge

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email