European Markets Advance Between 1% and 2%

Barry Adams
23 May, 2022
New York City

In Europe market indexes gained after investors bid up stocks and corporate activities perked up. 

The business confidence index in Germany rose to 93.0 in May from 91.9 in April, Munich-based Ifo said today. 

The confidence index was expected to decline to 91.4 on the account of rising inflation and slowing sales after improving modestly in April. 

The DAX index advanced 1.4% to 14,175.13, the CAC-40 index rose 1.2% to 6,358.17, and the FTSE 100 index advanced 1.7% to 7,513.08. 

Merger and acquisition news dominated the market sentiment. 

Siemens AG gained after Siemens Energy made a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy. 

Deutsche EuroShop AG jumped 40% to 21.90 euros after the shopping center operator received an offer from a consortium of investors for 1.4 billion euros. 

Holcim Group jumped 0.9% to 46.98 Swiss francs after the company agreed to acquire Louisiana-based Cajun Ready-Mix Concrete. 

Cajun has been operating in the Baton Rouge area with 108 employees and eight ready-mix plants since 2014. 

Holcim recently agreed to sell its stakes in two cement companies in India to Adani Group for more than $6 billion. 

In Paris, ArcelorMittal, Credit Agricole, and Societe Generale gained more than 3.5% but BNP Paribas fell more than 4%. 

In Asian markets stocks were subdued after China reported rising infection cases in Beijing over the weekend. 

Shanghai Composite index lost early gains to close nearly unchanged at 3,146.86 and the Hang Seng index declined 1.2% to 20,470.86. 

Stocks in Mumbai were also under pressure after the Reserve Bank of India is set to lift rates again at the next policy meeting scheduled on June 6. 

The Sensex and the Nifty indexes lost early momentum after the comment from the RBI governor and the indexes closed down.