European markets get week off to a strong start

GMT 21:29 2014 Monday ,14 July

Arab Today, arab today European markets get week off to a strong start

Brokers work at the German stock
London - AFP

 European equities got off to a strong start on Monday, with London boosted by Shire Pharmaceuticals' backing of a takeover bid by US giant AbbVie and Adidas a big winner at the World Cup.
Investors also kept an eye open for US bank results and an ear out for comments this week from the head of the Federal Reserve about the US economy and the likely timeline for raising interest rates.
When trading closed in Europe, London's FTSE 100 had added 0.84 percent to 6,746.14 points, Frankfurt's DAX 30 gained 1.21 percent to 9,783.01 points and the Paris CAC 40 won 0.78 percent to 4,350.04.
Milan rose 0.40 percent and Madrid increased by 0.64 percent, while Lisbon stocks edged up by 0.63 percent as worries eased over potential fallout from the plight of troubled lender Banco Espirito Santo (BES).
The markets also shrugged off data that showed eurozone industrial output fell by 1.1 percent in May.
In New York, US stocks scored solid gains in opening trades after Citigroup announced better-than-expected earnings and also owing to a rash of merger and acquisition activity.
In morning transactions, the Dow Jones Industrial Average added 0.79 percent to 17,0077.19.
The broad-based S&P 500 advanced 0.55 percent to 1,978.34, while the tech-rich Nasdaq Composite Index rose 0.68 percent to 4,445.44.
European markets had slumped last week as troubles at Portugal's largest listed lender, BES, raised fears of a possible default and a return to sombre days of the debt crisis.
"Traders have taken the weekend to calm down and decided that the recent woes of bad economic data and the flaring up of the eurozone crisis isn't a sign of the long-awaited correction," said Capital Spreads dealer Jonathan Sudaria.
"Whether or not they are correct is something that will have to be seen."
- Citigroup in focus, Adidas wins big -
In the United States, banking giant Citigroup released second-quarter earnings per share of $1.24, excluding a $7 billion legal settlement, well above the $1.05 projected by analysts.
"The catalysts for the bullish bias include a positive showing by foreign markets, better-than-expected earnings from Citigroup, and a spate of M&A activity," said Patrick O'Hare of
Back in Europe, one group had several reasons to celebrate the World Cup final in Brazil. Sporting goods company Adidas manufactured the footballs, sponsored both finalists, and is based in Germany, which won.
Adidas shares ended the day with a gain of 2.73 percent to 73.48 euros, leading Frankfurt blue-chips.
In London, Shire Pharmaceuticals recommended a revised $53.6-billion takeover from US giant AbbVie and said it was in "detailed discussions" over terms, ending its opposition to a deal.
AbbVie's latest cash-and-stock proposal for Shire was worth £53.20 per share, valuing it at the equivalent of £31.35 billion or 39.5 billion euros, Shire said in a statement.
Shire's share price gained 0.68 percent to £50.01 pence -- but held underneath the offer price.
"Shire Pharmaceuticals are trading higher but cautiously below the proposed offer price, suggesting investor nerves that the deal may not go ahead," noted Mike McCudden, head of derivatives at stockbroker Interactive Investor.
In Paris, Airbus Group shares were stable, gaining a slight 0.05 percent to 47.13 euros after the company launched an upgrade to its long-haul A330 passenger jet -- the A330neo -- which boasts more fuel-efficient engines.
The news was unveiled on the first day of the Farnborough airshow, a key event in the aviation sector calendar where Airbus battles with rival US giant Boeing for orders.
In foreign exchange deals on Monday, the European single currency rose to $1.3621 from $1.3604 late on Friday in New York.
The British pound slipped to $1.7080 from $1.7101 on Friday. The euro edged up to 79.74 pence from 79.54 pence.
In commodity deals, gold fell to $1,306 per ounce from $1,335 on Friday.


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