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Home / Business / FCA Renault Deal Hopes for Help for European Stocks By Reuters

FCA Renault Deal Hopes for Help for European Stocks By Reuters




© Reuters. The German Stock Price Index DAX Chart on the Frankfurt Stock Exchange

By Amy Caren Daniel and Agamoni Ghosh

(Reuters) – Strong Chinese export data and the agreement between the US and Mexico to avoid new import duties bolstered sentiment at European level stock markets on Monday while auto companies' shares also picked up on signs of revival in the Fiat-Chrysler and Renault merger.

The supraregional index rose 0.4% to 0805 GMT, with trade volumes reduced by Whitsun holidays in Germany, Switzerland, Austria and most Nordic countries.

The automotive sector increased by 0.5% as there were indications that Fiat Chrysler Automobiles NV and Renault SA (PA 🙂 were looking for ways to revitalize their merger and secure the approval of Nissan Motor Co.

Fiat Chrysler and Renault shares both rose about 2% after sources close to Reuters announced that they were discussing ways to revive the business.

"We believe it's too early to talk about resuming negotiations," wrote Equita analyst Emanuele Gallazzi in a note.

"Today's news along with the hypotheses discussed in various press sources regarding alternative scenarios for FCA, including GM, Hyundai and Geely, keep the stock's speculative appeal high."

President Donald Trump retired Last Friday, due to the shock threat of last month, to provide a 5% import tariff for all Mexican goods in exchange for immigration moves easing concerns for investors that a second major US trade dispute could plunge the world economy into recession.

"The markets blow small festive bubbles this morning" Deutsche Bank (DE :), analysts said in a note.

The trade tensions between the US and China continued. The group of 20 finance executives said that trade and geopolitical tensions have entailed risks to improving global growth without calling for a solution to the conflict.

Following weak US wage and salary data for non-agrarian companies on Friday, there were some buybacks that sparked hopes of a US Federal Reserve rate cut. However, this worst month in more than two years was offset by hopes of new stimulus from central banks to counter the threat.

BAE Systems (LON 🙂 gained its aerospace business with the United States, due in part to hopes for further 1

% aerospace and defense sales after United Technologies Corp (NYSE 🙂 had voted on Sunday Combining US contractor Raytheon (NYSE 🙂 Co. 659004] Thomas Cook's shares gained 15% after it was reported that Fosun Tourism was in Hong Kong in talks to buy the tour operator business, as the British group announced after three earnings warnings in the Hong Kong market stood before the collapse last year.

Ferguson Plc down 4% British third-party sanitary ware sales in the third quarter missed analysts' estimates.

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