European shares rise in wake of EU election relief, Fiat-Renault merger


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European shares rise in wake of EU election relief, Fiat-Renault merger

On Monday, the 27th of May 2019, a basket of European stock indices had wrapped up the day higher, as investors seemed to be riant over the progresses of a $35-billion merger talk between Italian-American Fiat-Chrysler and French Renault, while French President Macron’s grip on EU Parliament had kept EU businesses upbeat over his party’s vendetta to protect businesses and climate.

Although, trading volumes were much thinner due to a public holiday in UK and US on Monday (May 27th), the regional Pan-European STOXX 600 had gained 0.23 percent with a majority of the European indices rounding off the day at a positive territory.

The gauge of MSCI’s global equity index that keeps track of stock exchanges of 47 nations, had gained 0.06 percent. Among all of the majors of STOXX 600, auto stocks had gained more than 1.5 percent over optimism of a larger tie-up of European carmakers, which would make Renault-Fiat merger the world’s third largest automaker, behind Japan’s Toyota and Germany’s Volkswagen.

Addressing that the European stock markets may have bolstered in a near-term outlook, while investors would likely to add more cash in to euro zone stocks following election result, a macro-strategist at Makor Capital Markets, Stéphane Barbier de la Serre said, “I have a feeling that investors wouldn’t have considered entering the market again until the outcome of the elections.

The results are slightly positive in the end so we may see customers recommitting. But until I see it, it’ll be St Thomas”. Citing statistics, Monday’s market closure, which might well have painted a broad-based picture of Eurozone economy, had witnessed a surprise surge of Greece Stock Exchange, that climbed more than 6 percent and posted its best intra-day gain since February 2016, while London’s FTSE 100 had added 0.65 percent to 7,277.73 and French CAC remained flatlined at 5,336.19.