Surge in European Markets Extend Weekly Gain, Vodafone May Move HQ

Sarla Buch
29 Jun, 2016
New York City

European markets extended the rebound led by a surge in pharmaceutical stocks. The weaker pound also lifted large cap stocks in London trading. BT Group revised financial results of last two years. Siemens plans to invest

[R]4:00 PM Frankfurt – European markets extended the rebound led by a surge in pharmaceutical stocks. The weaker pound also lifted large cap stocks in London trading. BT Group revised financial results of last two years. Siemens plans to invest €1 billion in a new start up unit. Vodafone may move its headquarters from the U.K.[/R]

European markets extended 2-day rebound after a sharp decline that wiped off nearly $3 trillion of market cap around the world.

Pharmaceutical makers and banks led the gainers as investors showed appetite for risk, but U.K. faced shrinking economic prospects and credit downgrade from rating agencies.

In London trading, FTSE 100 index jumped 219.67 or 3.6% to 6,360.06 and in Frankfurt the DAX index increased 164.99 or 1.8% to 9,612.27.

In Paris, CAC 40 index advanced 106.47 or 2.6% to 4,195.32.

BT Group Plc jumped 4.7% to 409.85 pence after the U.K.-based communications services provider said it has completed reorganization of several business units.

The company had restated its financial results for the fiscal year ending in March 2016, BT Group''s revenue jumped 5.9% to £18.91 billion compared to £17.85 billion and operating profit increased 4.9% to £6.58 billion from the revised £6.27 billion in fiscal 2015.

Siemens AG gained 1.4% to €90.76 after the Germany-based industrial conglomerate plans to invest €1 billion or $1.1 billion in the next five years in a new start up unit.

Named “Next47”, the unit will initially be monitored by chief technology officer Siegfried Russwurm and the unit will start its operations from October 1 and operate from Berkeley, California, Shanghai, China, and Munich, Germany.

Technip SA soared 4.8% to €47.90 after the France-based subsea engineering and construction services provider signed an agreement with GE Oil & Gas to explore digital solutions for new LNG projects.

Vodafone Group Plc gained 1.9% to 222.25 pence after the U.K.-based mobile services provider warned that it could move its headquarters out of the U.K said “The UK’s membership of the European Union has been an important factor in the growth of a company.”