EUROPE MARKETS: European Stocks End With Gains, Led By Jumps For Gemalto, Steinhoff
12 Dezember 2017 - 08:31PM
Dow Jones News
By Carla Mozee and Victor Reklaitis, MarketWatch
Energy stocks also rise
European stocks closed in the green Tuesday, with smart-card
maker Gemalto NV and retail giant Steinhoff Holdings NV scoring
notable gains.
Energy shares also rose after oil prices marched higher in the
wake of a key pipeline outage.
How markets are moving: The Stoxx Europe 600 index climbed 0.7%
to end at 391.63, erasing Monday's fall of less than 0.1%
(http://www.marketwatch.com/story/european-stocks-edge-lower-as-techs-fall-but-uk-blue-chips-rise-2017-12-11).
The pan-European index closed at its highest level since Nov. 8,
according to FactSet data.
Among country-specific gauges, Germany's DAX 30 index rose 0.5%
to end at 13,183.53, and France's CAC 40 picked up 0.8% to
5,427.19.
The U.K.'s FTSE 100 rose 0.6% to end at 7,500.41. Gains for
energy shares helped there, as investors also digested official
figures showing the U.K. inflation rate at its highest level
(http://www.marketwatch.com/story/uk-inflation-hits-almost-6-year-high-2017-12-12)
in almost six years.
The euro traded at $1.1722, down from $1.1771 late Monday in New
York.
Stock movers: Shares of smart-card maker Gemalto (GTO.AE) soared
35% for the Stoxx Europe 600's biggest gain as the company reviewed
an unsolicited takeover bid
(http://www.marketwatch.com/story/gemalto-to-review-51-bln-takeover-bid-by-atos-2017-12-12)
of EUR4.3 billion euro ($5.1 billion) by French
information-technology company Atos SE. Atos shares (ATO.FR) were
up 7.1%.
Steinhoff shares rallied 28% for the Stoxx 600's second-largest
advance, with the company behind Mattress Firm and Poundland saying
it is enlisted more outside advisers to aid in its accounting
crisis. The stock remains down 78% for the month.
Other M&A in focus: But a takeover agreement for Australian
mall operator Westfield Corp. (WFGPY) weighed on shares of
Unibail-Rodamco (UL.AE), which fell 4.1%. The European property
company said it has reached a deal to buy Westfield, valuing it at
20.8 billion Australian dollars
(http://www.marketwatch.com/story/westfield-in-157-bln-takeover-by-unibail-rodamco-2017-12-12)(US$15.7
billion).
What else moved markets: The Stoxx Europe 600 Oil & Gas
Index was kicked up 1.2% as crude and Brent futures
(http://www.marketwatch.com/story/brent-oil-rises-to-fresh-212-year-high-as-north-sea-pipeline-outage-reverberates-2017-12-12)
extended the gains they logged on Monday after news that a major
North Sea oil pipeline, The Forties, will be shut down for weeks to
repair a leak. Crude futures later turned negative, but energy
stocks remained in the green.
While the outage is a significant supply disruption--the
pipeline carries supplies from more than 80 major fields--it has a
wider impact in that the Forties's flows feed into a key price
benchmark for global oil.
Oil producer moves: Among oil industry stocks, Tullow Oil PLC
(TLW.LN) rose 2.5%, France's Total (TOT) added on 1.5%, and Statoil
ASA (STL.OS) claimed a 3.1% rise. Subsea 7 SA (SUBC.OS) rose
1%.
Economic news: The ZEW think tank's economic conditions index
rose to 89.3 in December, from 88.8 in November, indicating a more
upbeat view of the situation in Germany. Economic expectations came
in at 17.4, down from 18.7 in November.
U.K. inflation in November was at its highest since March 2012,
hitting 3.1%, according to official figures. That was above
expectations of 3% and more than a full percentage point above the
Bank of England's target.
The U.K. central bank will release its next policy decision on
Thursday, but no changes are expected. The European Central Bank
will put out its own monetary policy update the same day, while the
U.S. Federal Reserve is expected to raise interest rates by a
quarter percentage point at the conclusion of its meeting on
Wednesday.
(END) Dow Jones Newswires
December 12, 2017 14:16 ET (19:16 GMT)
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