France, Austria Lift Growth Estimates; PostNL, BPost End Merger Talks

Lucy Stoeva
30 May, 2016
New York City

European stock markets closed slightly higher on Monday after France and Austria revised economic growth estimates. Daimler AG may face record cartel charges from the European Union. Dutch mail operator PostNL and Belgian rival BPost failed to agree on merger terms.

[R]4:00 PM Frankfurt, Germany – European stock markets closed slightly higher on Monday after France and Austria revised economic growth estimates. Daimler AG may face record cartel charges from the European Union. Dutch mail operator PostNL and Belgian rival BPost failed to agree on merger terms.[/R]

European stock markets closed slightly higher on Monday on positive economic news from several countries.

Trading volume remained thin as both the U.K. and the U.S. markets were closed in observance of national holidays.

In France, economic growth accelerated in the first quarter on the increase in consumer spending and investment. First-quarter GDP estimate was revised higher to 0.6% from 0.5% increase in the first estimate, the national statistics agency Insee said.

The figures mark the third quarter of economic growth in a row in France.

In Austria, first-quarter GDP increase was revised higher to 0.8% from the initial estimate of 0.6%, driven by an increase in consumption and investment growth, the Austrian Institute of Economic Research, or WIFO, said.

In Switzerland, the KOF Economic Barometer rose to 102.9 in May from 102.6 in April, the highest reading in one year, according to the KOF Swiss Economic Institute.

Most of the major indexes moved higher. In Frankfurt, the DAX index added 46.92, or 0.46%, to 10,333.23, while in Paris, the CAC 40 index rose 14.66, or 0.32%, to 4,529.40.

In Vienna, the ATX index advanced 8.93, or 0.39%, to 2,272.44.

Daimler AG rose 1.5% to €61.60 despite media reports that the company, together with other large truck makers, is facing record cartel charges from the European Union.

Fiat Chrysler Automobiles surged 2.8% and Volkswagen gained 1.7%.

In Amsterdam, PostNL climbed 3.5% to €3.99 after the unsuccessful attempt of Belgian rival BPost''s to buy Dutch mail operator.

On Friday, both companies confirmed that they had discussed a friendly public offer by BPost for all of the shares of PostNL, but failed to agree.

BPost fell 2.4% to €23.74 in Brussels trading.