LONDON — British shares rose on Monday as a flurry of deals lifted investors' mood and helped brush aside fears about a possible full-blown trade war between the U.S. and some of its closest partners.
At 0826 GMT, the blue chip FTSE 100 index was up 0.7 percent amid optimism across trading centres in Europe about the political situation in Italy and Spain.
"Carrying over last Friday's robust relief rally, investors continued to ignore the trade tensions sprouting out of the US in favour of celebrating the improved political situation in the Eurozone", said Connor Campbell, a financial analyst at Spreadex.
Contributing to confidence, a survey showed on Sunday that British companies were growing more quickly after a weak start to the year adding to signs that the economy is recovering from the impact of an unusually cold winter.
Adding to other signs that Britain's overall economy was picking up after a January-March slump, the IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI) held at 52.5, unchanged from April's modest growth rate after a sharp contraction in March.
UK-based packaging group DS Smith led the FTSE higher, up 3.3 percent after it offered to buy Spanish rival Europac for an enterprise value of 1.9 billion euros ($2.2 billion) to strengthen its business in western Europe and its supply chain.
Financial shares added the most points to the FTSE as news that Italy's biggest bank, UniCredit was exploring a merger with France's Societe Generale SOGN ) boosted the sector.
In the UK, lender CYBG rose 1.9 percent after it raised its offer for challenger bank Virgin Money VM ) by 7 percent.
EasyJet gained 2.5 percent after Deutsche Bank DBKGn lifted its target price for the stock and the sector benefited from the fact that AccorHotels said it was looking at buying a stake in Air France KLM AIRFxb .
(Reporting by Julien Ponthus; Editing by Keith Weir)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.