Tuesday 19 September 2017

European shares rise at open, buoyed by M&A deals

EUROPEAN stocks rose early on Monday as a flurry of big mergers and acquisitions deals boosted sentiment and helped the market bounce back after a two-session dip.

Shares in Irish drugmaker Elan jumped 7.9pc after U.S. peer Perrigo agreed to by the firm for $8.6 billion.

Publicis, whose shares were halted on Monday, unveiled over the weekend a plan to merge with rival Omnicom in a deal worth $35.1bn.

At 0707 GMT, the FTSEurofirst 300 index of top European shares was up 0.4pc at 1,210.32 points.

"These big M&A deals are a big boost for the market, although the buzz is usually short-lived, so I remain relatively cautious at this point," said Philippe de Vandiere, analyst at Altedia Investment Consulting, in Paris.

"The market has risen quite a lot already and even though we didn't really have nasty surprises in earnings, there's no big catalyst seen ahead, and we see investors turning more defensive."

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