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European stocks mixed amid earnings and M&A news

Published 03/28/2017, 05:09 AM
© Reuters.  European equities mostly higher, though London slips, while investors digest earnings and M&A

Investing.com - European stocks showed mixed trade on Tuesday as investors appeared to move on from concerns over U.S. President Donald Trump’s ability to move ahead with fiscal policies and, in a session lacking in major economic reports, market players digested both corporate earnings and news flow surrounding mergers & acquisitions (M&A).

In midmorning trade in Europe, the benchmark Euro Stoxx 50 gained 0.28%, France’s CAC 40 inched up 0.06% and Germany’s DAX 30 traded up 0.59%.

Wolseley (LON:WOS) led the Stoxx 600 higher with gains of more than 6% after the British supplier for builders saw growth in the U.S. pump first half profit 25% higher.

Near the bottom of the index, Ladbrokes (LON:LCL) Capital was off around 1.6% as the British bookmaker reporter a pretax loss of £204.3 million ($257 million) for 2016.

Ericsson (BS:ERICAs) fell around 1.4% as the Swedish telecom announced that the cost of its restructuring charges will be twice the original estimate.

In M&A activity, EDP (LS:EDP) gained around 4% as the Portuguese firm launched an offer to buy the 22.47% of its renewable energy subsidiary EDP Renovaveis (LS:EDPR) that it does not already own.

Dufry AG (BS:DUFNz) rose almost 4% on reports that the Chinese group HNA was interested in buying a stake in the Swiss airport retailer.

British housebuilder Redrow (LON:RDW) opted to bow out of the race to acquire rival Bovis Homes (LON:BVS).

Akzo Nobel, currently fighting to avoid a takeover by U.S. rival PPG announced Tuesday that it would present a strategic plan on April 19.

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Meanwhile, oil prices edged higher on Tuesday, rebounding from the prior session's losses as investors continued to ponder whether an OPEC-led production cut will be extended through the end of the year.

Energy stocks traded lower, as French oil and gas major Total SA (PA:TOTF) lost 0.18% and Italy’s ENI (MI:ENI) fell 0.13%, and Norwegian rival Statoil (OL:STL) was down 0.07%.

Financial stocks were mostly higher, as French lenders BNP Paribas (PA:BNPP) rose 0.48% but Societe Generale (PA:SOGN) dropped 0.49%, respectively, while Germany’s Commerzbank (DE:CBKG) and rival Deutsche Bank (DE:DBKGn) gained 0.97% and 1.28%, respectively.

Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) rose 0.55% and Unicredit (MI:CRDI) gained 2.15%, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) traded up 0.68% and 0.51%, respectively.

In London, the commodity-heavy FTSE 100 slipped 0.74%, as investors awaited the official triggering of Article 50, which will begin negotiations to leave the European Union, on Wednesday.

Shares in Glencore (LON:GLEN) gained 0.62%, Anglo American (LON:AAL) rose 0.12%, while BHP Billiton (LON:BLT) advanced 0.96% and Rio Tinto (LON:RIO) traded up 1.12%.

Energy stocks slipped, as BP (LON:BP) fell 0.10% and rival Royal Dutch Shell (LON:RDSa) gave up 0.01%.

Financial stocks showed mixed trade, with shares in HSBC Holdings (LON:HSBA) up 0.22% and the Royal Bank of Scotland (LON:RBS) rose 0.13%, while Barclays (LON:BARC) advanced 0.27%. Lloyds Banking (LON:LLOY) broke the general trend, trading down 0.82%.

In the U.S., futures pointed to a flat to higher open. The Dow Jones Industrial Average futures inched up 0.05%, S&P 500 futures edged forward 0.09%, while the Nasdaq 100 futures rose 0.14%.

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