* STOXX50E up 0.4 pct
* Ryanair falls 12.5 pct, drags travel sector down
* Italian shares reverse course as banks tumble again
* Fresenius jumps 8.5 pct after Akorn ruling win (Updates prices, adds details)
By Julien Ponthus and Helen Reid
LONDON, Oct 1 (Reuters) - European shares rose on Monday as a new U.S.-Mexico-Canada trade pact lifted some of the gloom over global trade, while Italian stocks extended Friday's slide as top EU officials weighed in on the government's budget plans.
There was no shortage of corporate news to drive the markets either, with Ryanair taking a 12.5 percent dive after a profit warning, Fresenius boosted by a ruling in its favour, and Linde rising on a regulator's green light for its merger with Praxair (NYSE: PX ).
"News overnight of a late agreement between the U.S. and Canada to salvage the NAFTA trade agreement should give a boost to global risk appetite at the start of the fourth quarter," wrote Peel Hunt strategist Ian Williams, adding the deal "may offer encouragement that the other global trade disputes can be settled satisfactorily".
Ryanair RYA.I was the worst performer, down 7.5 percent after it cut its forecast for full-year profit and said there could be worse to come if recent coordinated strikes across Europe continue to hit traffic and bookings. fall in Europe's largest low-cost carrier weighed on the wider sector .SXTP which fell 0.5 percent.
While the overall market gained, Italian shares were still on tenterhooks in the fallout of the government's decision to increase its deficit target, while Italy's government bond yields climbed higher.
The Vice President of the European Commission Valdis Dombrovskis said its initial view was that the Italian budget plans break EU rules. went there to reassure but intial comments from Moscovici and Dombrovskis are not positive," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan.
Euro zone banks .SX7E also felt the strain, down another 1.2 percent and the worst-performing sector.
Among gainers, Fresenius FREG.DE shares topped the STOXX with an 8.3 percent gain after a Delaware judge ruled the German healthcare group could walk away from its $4.75 billion deal for U.S. drugmaker Akorn Inc AKRX.O and rejected Akorn's claim that the merger agreement had been breached. Linde LING.DE jumped 6.2 percent after it received approval for its proposed $83 billion merger with Praxair PX.N from the Chinese antitrust authorities. supermarket group Casino CASP.PA inched up 0.1 percent after it said it had agreed to sell some property assets for 565 million euros ($655 million) to reduce debt levels that have worried investors.
Add Chart to Comment
- 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.
- Only English comments will be allowed.