3-Day Rally in European Markets, News Corp to Buy Wireless Group

Sarla Buch
30 Jun, 2016
New York City

European market indexes extended 3-day gains led by financial and resource stocks. EDF is looking to sell 50% of its non-core assets to RTE unit for more than

[R]4:00 PM Frankfurt – European market indexes extended 3-day gains led by financial and resource stocks. EDF is looking to sell 50% of its non-core assets to RTE unit for more than €5.2 billion. Wireless Group agreed to be acquired by News Corp for £220.3 million.[/R]

European market indexes extended gains for the third day in a row and financial and resource stocks led the gainers.

In London trading, FTSE 100 index rose 30.08 or 0.5% to 6,389.78 and in Frankfurt the DAX index fell 27.64 or 0.3% to 9,584.42.

In Paris, CAC 40 index added 9.29 or 0.2% to 4,204.96.

For the month, FTSE 100 index gained 1.9% and the DAX index declined 7.3% and the CAC 40 index plunged 7.2%.

For the quarter, FTSE 100 index jumped 3% and the DAX index dropped 4.6% and the CAC 40 index declined 5.4%.

For the first-half, FTSE 100 index rose 1.2% and the DAX index plummeted 11.8% and the CAC 40 index tumbled 10.6%.

Electricite de France SA jumped 4.2% to €10.84 after the Reuters reported France-based electricity producer intends to divest approx 50% of its non-core assets to RTE unit for about more than €5.2 billion or $5.78 billion.

John Wood Group Plc gained 0.7% to 675.50 pence after the U.K.-based energy services provider said decline in overhead cost in the first-half ending in June perform well and increased dividend by a “double digit percentage” for 2016.

The company kept its overall forecast for the year unchanged and added there is no change to operating profit estimate to drop about 20% from 2015 as announced in May.

Wireless Group Plc surged 67% to 309 pence after the U.K.-based television company agreed to be acquired by media conglomerate News Corp for 315 pence per share in cash or about £220.3 million or $290.3 million.