Eurostoxx 50: 2,950.96 (–4.88) Frankfurt DAX: 7,175.31 (–0.02) Paris CAC: 4,041.74 (–1.18)
EUROPEAN STOCKS climbed for a third day yesterday, led by technology companies, after Texas Instruments agreed to buy National Semiconductor, fuelling optimism that company spending will push shares higher.
The Stoxx 600 advanced 0.2 per cent to 280.91 at the close in London. The gauge has surged 78 per cent from its low in March 2009 as government stimulus measures, higher than estimated earnings and corporate takeovers boosted investors’ optimism.
“More shareholder-friendly policies are being made possible thanks to past corporate deleveraging and significant cash positions, with a mix of dividends, buybacks or M A moves,” Alain Bokobza, the head of asset allocation strategy at Société Générale wrote in a report yesterday.
“We maintain a heavy exposure to European equities,” he said.
STMicroelectronics, Europe’s largest chipmaker, rose 2.9 per cent to €9.04.
Infineon Technologies rose 3.9 per cent to €7.75.
Texas Instruments, the second-largest US chipmaker, agreed to buy National Semiconductor for about $6.5 billion, its biggest acquisition, to expand its analog semiconductors business.
TUI climbed 3 per cent to €8.78. The owner of Europe’s tour operator has held talks with potential buyers of a stake in its container shipping unit Hapag-Lloyd, company spokesman Robin Zimmermann said.
Storebrand gained 4.5 per cent to 49.53 kroner as Morgan Stanley added the insurer’s shares to its best ideas list.
GDF, France’s former gas monopoly, slid 1.9 per cent to €27.73. EDF retreated 3.7 per cent to €28.45.
Bayer sank 3.6 per cent to €54.65.
Siemens slipped 1.3 per cent to €96.87 as chief financial officer Joe Kaeser said growth will slow in the second half of the year at a presentation the Munich-based company gave to analysts yesterday.
Vestas Wind Systems, the world’s largest turbine maker, slumped 4.9 per cent to 213.40 kroner.
Parmalat lost 2.5 per cent to €2.31.
Vodafone declined 1.5 per cent to 176.2p. The stock was cut to “reduce” from “neutral” at Evolution. – (Bloomberg)
