FCA-Renault agreement hopes to help European equities By Reuters

By Amy Caren Daniel and Agamoni Ghosh

(Reuters) – Strong data on Chinese exports and the US-Mexico agreement to avoid new import tariffs boosted the mood on the European stock markets on Monday, while shares in US stocks and shares rose. Car manufacturers have also benefited from the desire to revive the merger between Fiat-Chrysler and Renault.

The pan-regional index rose 0.4% to 0805 GMT as trading volumes were reduced by Whit Monday in Germany, Switzerland, Austria and most Nordic countries.

The auto sector grew by 0.5% thanks to signs that Fiat Chrysler Automobiles NV and Renault SA (PA 🙂 were looking for ways to revive their meltdown plan that had collapsed and get Nissan Motor Co.'s approval.

Shares of Fiat Chrysler and Renault rose about 2%, after corporate sources told Reuters that they were back in talks on ways to revive the deal .

"We think it is too early to talk about the reopening of negotiations," wrote Equita analyst Emmanuel Gallazzi.

"The news of today as well as the assumptions mentioned in various news sources regarding alternative scenarios for FCA, including GM, Hyundai and Geely, keep up the speculative appeal of the title. "

President Donald Trump has decided Friday to withdraw from the shock caused last month by the threat of a 5% import duty on all Mexican goods in exchange for immigration measures, easing the Investors fearing that a second major trade dispute in the United States will lead the global economy into recession.

"Markets make little festive bubbles this morning" German Bank (DE 🙂 analysts said in a note.

Trade tensions between the United States and China persisted, with the Group of 20's financial leaders declaring that trade and geopolitical tensions posed risks to improving global growth while avoiding the call to trade. to a resolution of the conflict.

Gains were added to the remaining purchases after weak data from US non-farm payrolls Friday, which gave rise to hopes of a reduction in interest rates by the Federal Reserve. US.

Concern over the pace of growth in the world's major economies led to a nearly 6% drop in European stock markets in May, their worst month in more than two years, but has since been thwarted by hopes of growth. new stimulus measures central banks threat.

Among the other titles, BAE Systems (LON 🙂 gained 1% over the hope of concluding other agreements in the aerospace and defense fields after United Technologies Corp. (NYSE: ) agreed on Sunday to consolidate its aerospace business with American subcontractor Raytheon (NYSE 🙂 Co, in what would be the biggest merger in this sector.

Thomas Cook shares jumped 15% after the announcement that Fosun Tourism of Hong Kong was in talks to buy out its tour operator business while the British group was about to split after publishing three warnings about its profits in the past year.

Ferguson Plc lost 4% after the third-quarter plumbing product distributor's business figure was overtaken by analysts' estimates.