FTSE, DAX Fall on Weak Commodities; Diebold Approaches Wincor

Lucy Stoeva
23 Nov, 2015
New York City

Stock markets lost ground in Europe on weakening commodity prices. Playtech terminated merger agreement with Plus500. Tod

[R]4:00 PM Frankfurt – Stock markets lost ground in Europe on weakening commodity prices. Playtech terminated merger agreement with Plus500. Tod’s agreed to acquire the Roger Vivier luxury brand for €415 million. The U.S.-based Diebold offered $1.8 billion to Wincor-Nixdorf.[/R]

Market indexes in Europe were overwhelmed by the six-year commodities prices and a growing consensus for the further weakening in the demand for commodities.

On the positive side, expectations for higher defence spending in the U.K. and the merger approach to Wincor Nixdorf by the U.S. rival Diebold in Germany, limited the losses.

In London trading, FTSE 100 index slumped 25.90 or 0.4% to 6,308.73 and in Frankfurt the DAX index slid 36.50, or 0.3%, to 11,083.33.

In Paris, CAC 40 index dropped 33.93 or 0.7%, to 4,877.04.

Copper, coal, and iron ore dropped to a new six-year low in London and Sydney trading and trading volumes were thin on both exchanges.

The Bloomberg Commodity Index, which includes 22 raw materials, sank 2.2% percent to 85.85, the lowest level since August 1999.

Acano Limited, the U.K.-based privately held multiple videoconferencing services provider agreed to be acquired by the U.S.-based internet networking services provider Cisco System, Inc for about $700 million in cash.

Mitie Group Plc plunged 6.2% to 311.50 pence after the U.K.-based outsourcing services provider said revenues in the first-half ending in September jumped 2.2% from a year ago to £1.12 billion.

Net in the period swung to profit of £35.9 million, compared to a loss of £3.3 million a year ago. Diluted earnings per share swung to profit of 9.6 pence from diluted loss per share of 1 penny a year ago.

Playtech Plc plummeted 9% to 774.50 pence after the U.K.-based online gambling software and services provider terminated its merger agreement with Plus500 Ltd for £460 million, as it will be unable to obtain approval of the Financial Conduct Authority before the end of the year.

In London, shares of Rolls Royce rose 2.36% to 565 pence after the U.K. finance minister George Osborne announced intentions to buy more fighter jets and boost anti-terrorism spending by 30%.

Tod''s SpA gained 0.8% to €79.70 after the Italy-based luxury goods maker agreed to acquire the French luxury brand Roger Vivier for about €415 million.

Wincor Nixdorf AG soared 5.2% to €48.21 after the Germany-based automated teller machine maker was approached by the U.S.-based rival Diebold Inc for about $1.8 billion in cash and stock.