European shares returned to the green Monday, rebounding from a tough week after investor jitters over potentially faster rate hikes appeared to ease. And, while there could be further volatility ahead, analysts repeat the mantra that European economic fundamentals remain positive.
By 1220 BST, the EUROSTOXX 600 was 1.41% higher, while the EUROSTOXX 50 had gained 1.44%. Regional bourses were equally positive. The German DAX was 1.71% in the green, the French CAC was 1.39% in positive territory, while the Spanish IBEX rose 1.41%.
TDC rise supports European indices
European indices made gains on a number of developments, including TDC shares rising on news it’s the subject of a takeover approach. The Danish telecoms business has said it will not go ahead with its $2.5 billion bid for Swedish business MTG after receiving an offer from an unnamed bidder.
“TDC has been approached by a potential bidder for all shares of TDC,” the Danish business said in a statement.
“In light hereof, consistent with the obligations of TDC towards Modern Times Group MTG AB (“MTG”), TDC has consulted with MTG and has communicated that TDC's Board of Directors would intend to withdraw its recommendation of the transaction with MTG,” the statement added.
TDC shares gained 6.35% to DKK46.40, following the news.
European stock movers
Aside from the jump in TDC shares, other stock moves also supported European stock markets.
Victrex shares rose 4.46% to £2,532.00 after an upgrade from Bank of America Merrill Lynch. Meanwhile, shares in Dutch-based chemicals business, Akzo Nobel, gained 1.82% to trade at €77.22.
There were some fallers Monday, too.
Among them were Heineken shares which declined 3.34% to €81.04, as the Dutch-based brewer announced a lower profit growth outlook for 2018, than between 2014-17.
Another notable faller was SES shares, which slid 6.41% to €12.05 after announcing management changes.