UKX FTSE 100 Index

By Dave Morris

Merlin Entertainment surges on buyout offer

European markets edged upward on Friday as investors were cautiously optimistic that the G-20 summit would see the easing of trade tensions.

How did markets perform?

The Stoxx 600 rose 0.3% to 383.2, after closing flat on Thursday.

The U.K.'s FTSE 100 was also up 0.3%, at 7,423.8, following Thursday's decline of 0.2%.

The pound was flat at $1.2674, after also closing flat on Thursday.

In Germany, the DAX climbed 0.5% to 12,332.8 after edging up 0.2% Thursday.

France's CAC 40 increased 0.3% to 5,508.4, erasing Thursday's 0.1% decline.

Italy's FTSE MIB improved by 0.4% to 21,185.2, adding to a 0.3% increase Thursday.

Oil prices recovered after slumping early Friday. The West Texas Intermediate (WTI) crude oil benchmark was flat at $59.45/bbl., while Brent crude was up 0.1% to $66.63/bbl.

What's moving the markets?

The G-20 summit in Osaka, Japan kicked off with Reuters reporting that the session's first working lunch (https://www.reuters.com/article/us-g20-summit-economy/many-g20-heads-voiced-concern-over-trade-tensions-global-growth-japan-government-idUSKCN1TT0PI?il=0) highlighted stark differences in positions among several world powers. While a Japanese official told reporters that the countries agreed that the group needed to drive global growth, a Russian official present described work on the final communiqué as "not easy" amid dissension over issues from climate change to information security.

Describing his expectations for talks at the summit with Chinese President Xi Jinping about the continuing trade dispute, U.S. President Donald Trump said: "At a minimum it will be productive."

The Times divulged Boris Johnson's plan for an emergency budget (https://www.thetimes.co.uk/article/stamp-duty-slashed-in-boris-johnson-no-deal-budget-tg7x050x9) to prepare the U.K. for a possible no-deal Brexit, intended to have the economy "going gangbusters" by the time the country left. The newspaper reported that the former Foreign Secretary and currently top candidate in the Conservative Party leadership race had offered his ousted leadership rival, Home Secretary Sajid Javid, the post of Chancellor of the Exchequer to implement the plan. The result of the leadership contest is expected on July 22.

The U.K. Office of National Statistics confirmed that the country's economy grew 1.8% in the first quarter (http://www.marketwatch.com/story/uk-growth-unrevised-in-first-quarter-2019-06-28-44855921) compared to the same period a year ago, unrevised from the earlier estimated figure. The office said the rise was consistent with stockpiling ahead of the aborted March 29 Brexit deadline, and noted that household consumption was higher.

Which stocks are active?

Kirkibi Invest, the private company that owns toy maker Lego A/S, has teamed up (http://www.marketwatch.com/story/blackstone-lego-owner-in-6b-madame-tussauds-deal-2019-06-28) with the Canada Pension Plan Investment Board and U.S. private equity company Blackstone Group LP (BX) to purchase Merlin Entertainments PLC (MERL.LN), the second biggest visitor-attraction operator in the world, for GBP4.8 billion. Merlin's businesses include a series of Legoland theme parks as well as London icons including Madame Tussaud's and the Coca-Cola London Eye. Merlin shares jumped 14%.

German newspaper Handelsblatt reports (http://www.marketwatch.com/story/bmw-mulls-ceos-future-freezes-new-hires-report-2019-06-28) that the board of BMW AG (BMW.XE) is considering extending CEO Harald Krueger's term to beyond 2020. The report also says the auto maker is putting in place a hiring freeze to see off the prospect of job losses. BMW shares were down 0.5%.

Traton SE (8TRA.BE) shares sank below their offer price as the market debut of the truck and bus unit (http://www.marketwatch.com/story/vws-traton-shares-slide-lower-in-market-debut-2019-06-28) of Volkswagen AG (VOW3.XE) proved a disappointment. Traton shares were trading at EUR26.65, compared with the offer price of EUR27. The new company, whose brands include Man and Scania, is one of the world's largest truck manufacturers.

Despite moving back higher, the briefly falling oil price boosted airlines including International Consolidated Airlines Group SA (IAG.LN) whose shares were up 3.4% in the session and EasyJet PLC (EZJ.LN) which rose 1.9%.

(END) Dow Jones Newswires

June 28, 2019 07:38 ET (11:38 GMT)

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