DAX Leads European Rebound with 2% Rise, Metro and Lafarge In Focus

Lucy Stoeva
25 Nov, 2015
New York City

Stock markets in Europe recouped losses on Wednesday as positive company announcements alleviated the pressure of political concerns. The U.K government announced plans to invest

[R]5:00 PM Frankfurt –Stock markets in Europe recouped losses on Wednesday as positive company announcements alleviated the pressure of political concerns. The U.K government announced plans to invest £15 billion in anti-terrorism security in the next five years. Metro AG’s dividend exceeds expectations.[/R]

European markets staged a rebound on Wednesday, fuelled by positive company announcements, recovery in the travel sector, and strength in defence and construction stocks.

U.K. Chancellor George Osborne scrapped planned cuts to tax credits altogether, instead of cutting other budgets to cover the cost of £4.4 billion.

He also announced that security is top priority and the government plans to invest over £15 billion over the next 5 years in fighting terrorism.

The U.K. housing market will receive funding of £2.3 billion and legal reforms that aim to deliver affordable housing.

In London trading, FTSE 100 index rose 64.35, or 1.03% to 6,341.58 and in Frankfurt the DAX index jumped 244.14 or 2.23% to 11,178.13.

In Paris, CAC 40 index gained 84.32 or 1.75% to 4,904.60.

British housing companies Taylor Wimpey PLC gained 3.59%, Barratt Developments PLC added 2.95%, and Berkeley Group Holdings PLC leapt 1.38%.

Defence contractor BAE Systems jumped 1.3% and Rolls-Royce Holdings added 2.73%.

German retailer Metro AG exceeded expectations about its annual dividend, while Swiss-French consortium LafargeHolcim Group announced asset sales for 3.5 billion Swiss francs and a higher dividend.

Both stocks gained more than 4% on the news.

Travel stocks recovered from losses on Tuesday, when Turkey-Russia tensions and a U.S. government travel alert brought the sector down.

In Frankfurt, tour operator TUI AG rose 4.15%, while the flagship German airline Deutsche Lufthansa AG jumped 2.87% after the cabin crew union canceled a pending strike.