Shares higher in the wake of elections to the European Parliament

European markets: FTSE, GDAXI, FCHI, IBEX

Germany's DAX rose about 0.3%, while France's CAC climbed almost 0.2%. Italy's FTSE MIB jumped 0.7%. Markets in U.K. is closed Monday due to a holiday holiday.

Investors in Europe will largely be focused on results from the EU parliamentary elections. Initial results suggested a strong impression for liberal and green parties, while Eurosceptic groups in the UK and France benefited from the gains they saw in 201[ads1]4.

Pro-EU parties are still expected to make up the majority of parliament but hold on to about two thirds of the seats. But right-wing party parties in both the UK and France gave good gains, with Nigel Farages Brexit party beating Britain's two main parties and Marine Le Pen's National Rally, narrowly striking President Emmanuel Macron's central party.

The euro lost some ground against the dollar on Monday morning, trading just under $ 1.12 and trimming its previous gains.

Sectors were mostly on positive territory, with cars up 1.4%, and got a boost from the news that Fiat Chrysler and French rival Renault are in merger negotiations.

Renault rose to the top of the European reference point after Fiat confirmed that it had filed a proposal for a merger with its French rival. Fiat said in a press release that the joint organization would produce an estimated sales of 8.7 million vehicles a year and is considered the world's third largest automaker.

Fiat shares rose 10%, while Renault increased 14%.

Elsewhere, trading tensions remained a focus point for investors. The billionaire founder of Chinese telecom giant Huawei, Ren Zhengfei, told Bloomberg on Sunday that, despite Beijing's heated trade war with the United States, would oppose Chinese retaliation against major rival Apple.

At the same time, US President Donald Trump put pressure on Japan to get the trade balance between the two countries "straightened out quickly." Trump has threatened to beat the country's car manufacturers with high tariffs.

Source link

Back to top button