European shares battle, however M&A information lifts shares of Carrefour and Telefónica
European stocks battled for traction on Wednesday as investors continued to focus on COVID-19 vaccines and rising infections in the region. Deal talk and developments for the French company Carrefour and the Spanish company Telefónica drove these stocks up.
The Stoxx Europe 600 Index SXXP (+ 0.24%) remained unchanged after a slight increase on Tuesday. The German DAX 30 DAX (+ 0.18%) fell by 0.1%, the French CAC 40 (PX1) by + 0.41% (+ 0.1%) and the British FTSE 100 UKX (+ 0.11%) %) also flat. GBPUSD pound, + 0.23%, extended gains Tuesday after Bank of England Governor Andrew Bailey opposed the idea of negative interest rates to fuel growth as the COVID-19 pandemic continues to mount .
In the UK, lockdown violations are facing tougher police action, Martin Hewitt, chairman of the National Police Chiefs Council, said at a news conference Tuesday. The UK recorded 1,243 more COVID-19 deaths on Tuesday as it battles a contagious new strain of the disease.
Elsewhere, the Netherlands has extended the lockdown to next month, and Chancellor Angela Merkel said another 10 weeks of tough measures may be required.
Read: Why this country vaccinates its working-age adults from the elderly
The US stock futures YM00, + 0.12% ES00, + 0.13% NQ00, + 0.26% rose slightly as investors watched the pandemic, but also the hopes for incentives.
“The focus remains on the new administration’s financial program, which we should elaborate on later this week when President-elect Biden is expected to present his position in a political priority,” said Michael Hewson, chief market analyst at CMC Markets UK, in a notice to clients.
Meanwhile, the House of Representatives passed a resolution late Tuesday calling on Vice President Mike Pence to remove President Donald Trump from office. As Pence previously said he wouldn’t go that route, the House will hold an impeachment vote on Wednesday.
Carrefour CA’s shares (+ 9.70%) rose 8% after French supermarket chain and Canadian convenience store operator Alimentation Couche-Tard ATD.B (-2.22%) confirmed they were in There are exploratory talks for a possible bond.
“While we are struggling at this stage to come up with a strategic rationale and contemplate a merger scenario that could disrupt some shareholders, we have to admit that the news should fuel Carrefour’s momentum for the weeks ahead,” said Clément Genelot, analyst at Bryan Garnier, in a note to customers.
“Especially after a disappointing year in 2020, in which the share price has only risen by 2% and has been in the EUR 14-17 price range since 2018,” added Genelot.
Jerónimo Martins JMT shares, + 2.07%,
The company, which operates supermarkets in Portugal, Poland and Colombia, gained 2.7%.
And shares of Telefónica TEF, + 1.14% TEF, + 9.67% rose 6% after Spanish telecom announced that its subsidiary Telxius Telecom had entered into an agreement with American Tower to sell its European and Latin American telecommunications tower -Signed divisions for EUR 7.7 billion (EUR 7.7 billion). USD 9.40 billion) in cash.
ASOS ASC shares rose + 2.12%, 0.8% after the online retailer announced that sales for the first four months of fiscal 2021 were higher than expected and that pre-tax profit for the full year is expected at the upper end of current market views.