EUROPE MARKETS: European Stocks Propelled Higher By Italian Banks, Nestlé Shares
June 26 2017 - 5:11AM
Dow Jones News
By Sara Sjolin, MarketWatch
Oil rally boosts sentiment too
European stocks logged broad gains on Monday, lifted by Italian
banks after Rome stepped in to shut down two failed lenders, and as
Nestlé SA rallied after a hedge fund snapped up a major stake in
the consumer-products giant.
The Stoxx Europe 600 index climbed 0.6% to 389.87, setting it on
track for its highest close in a week.
Stocks across Europe were last week pressured by a renewed
selloff in oil prices, with crude slumping to a 10-month low on
Wednesday. However, oil prices jumped more than 1% on Monday,
helping lift energy giants on the European markets.
Shares of Total SA (TOT)(TOT) added 0.6%, Royal Dutch Shell PLC
(RDSB.LN) (RDSB.LN) rose 0.9%, and Repsol SA (REPYY) put on
0.6%.
Italian bank rescue: The Italian government on Sunday reached a
deal to close two struggling lenders
(http://www.marketwatch.com/story/italy-may-spend-billions-to-shut-two-failing-banks-2017-06-25)
-- Veneto Banca and Banca Popolare di Vicenza -- after the European
Central Bank on Friday evening declared that the pair was set to
fail. The bill to assume responsibility for liquidating the banks'
bad loans and other items could cost the government as much as 17
billion euros ($19 billion).
The "good" assets of the banks will be transferred to Intesa
Sanpaolo SA (ISP.MI) for the token price of EUR1 . Shares of Intesa
rose 3.1% on Monday after the news. Among other Italian banks,
shares of Unione di Banche Italiane SpA (UBI.MI) added 3.5% and
UniCredit SpA (UCG.MI) picked up 2.7%.
Italy's FTSE MIB index rallied 1.1% to 21,062.29.
Other movers: Shares of Nestlé SA (NESN.EB) jumped 4.3%, on
track for an all-time closing high. The rally came after news that
billionaire activist investor Daniel Loeb's Third Point LLC hedge
fund has taken a $3.5 billion stake
(http://www.marketwatch.com/story/daniel-loebs-hedge-fund-takes-35b-nestle-stake-2017-06-25)
in the Swiss consumer-products stalwart.
Individual indexes: Germany's DAX 30 index climbed 0.6% to
12,806.14, while France's CAC 40 index gained 0.8% to 5,309.48.
The U.K.'s FTSE 100 index traded 0.6% higher
(http://www.marketwatch.com/story/ftse-100-breaks-4-day-losing-streak-as-oil-rallies-2017-06-26)
at 7,467.28, boosted by the benchmark's oil companies.
The euro was down at $1.1188, compared with $1.1193 late Friday
in New York.
(END) Dow Jones Newswires
June 26, 2017 04:56 ET (08:56 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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