Wednesday 22 November 2017

Qualcomm takeover bid lifts stocks

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Ellie McDonald

Ireland will tap the markets for €1bn to €1.25bn of new bond debt at an auction on Thursday. The National Treasury Management Agency (NTMA) will offer two long-terms bonds in the auction - dated 2026 and 2015.

Meanwhile, European shares ended the day in positive territory on Monday after a session in which promising eurozone economic data and rising oil prices failed to offset some earnings and corporate news disappointment. The pan-European STOXX 600 rose a little more than 0.1pc to 396.59 points, close to two-year highs.

"After the really good run we had, I think there is nothing bad about it if the market takes a breather," said Tilmann Galler, global market strategist at JPMorgan Asset Management.

Mr Galler said that IHS Markit's final composite Purchasing Managers' Index for the eurozone in October was a positive signal for European stocks.

"We believe that the eurozone can keep up this above-trend growth in the coming quarters because the region has one advantage versus the US economy - the cycle is much younger," he argued.

However, some results and negative developments on the corporate front disappointed investors.

Shares in Deutsche Telekom dropped 2.6pc to the bottom of the DAX after an attempt by its T-Mobile US unit to merge with Sprint Corp collapsed at the weekend.

The technology sector, meanwhile, was up 0.8pc after a boost from a potential $103bn mega-deal in the chip sector. The news also lifted the tech-heavy Nasdaq. Broadcom made an unsolicited bid for Qualcomm on Monday, setting the stage for a major takeover battle as the chip maker looks to dominate the fast-growing market for semiconductors used in mobile phones. (Additional reporting Reuters)

Irish Independent

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