LONDON (Reuters) – A multi-billion pound merger between British supermarket Sainsbury’s and ASDA shook up retail stocks on Monday while European benchmarks rose, on track to end the month of April with a gain.
The pan-European STOXX index rose 0.1 percent while Germany’s DAX .GDAXI gained 0.3 percent, buoyed by investors’ improved risk appetite as tensions between North and South Korea eased, and companies delivered strong earnings figures.
Tesco (TSCO.L), whose position as UK leader in terms of market share would be overtaken by the new merged group, tumbled 2.5 percent on the news, weighing retail stocks down.
Morrisons (MRW.L) and Marks & Spencer also fell 0.6 percent to 0.7 percent. France’s Carrefour (CARR.PA) however gained 0.4 percent, while Casino (CASP.PA) rose 0.9 percent.
In other deal news, Deutsche Telekom (DTEGn.DE) shares rose 1.5 percent to the top of the DAX after the German firm clinched a $26 billion deal to merge T-Mobile US and Sprint.
In results-driven moves, the world’s biggest advertising group WPP (WPP.L) surged up 9 percent after reporting forecast-beating sales in its first results without founder Martin Sorrell.
The agency’s gains boosted the pan-European media sector .SXMP up 1 percent. Financials stocks, the most sensitive to investors’ risk appetite, were the biggest driver of the STOXX.
0 comments
Share
