European shares are higher around mid-afternoon Monday, as investors are buoyed by Friday’s jobs report. Meanwhile, news of a major deal between German energy firms RWE and E.ON is also lifting the markets.
By 1320 BST, the EUROSTOXX 600 and EUROSTOXX 50 had both gained 0.26%. The regional bourses were also higher. The German DAX was 0.43% in the green, the French CAC was 0.09% in positive territory, while the Spanish IBEX improved 0.31%.
Continued gains are buoyed by Friday’s US jobs report. The data showed a larger than expected increase in new jobs, however, wage growth wasn’t as bullish as had been anticipated.
This was a positive combination for investors, as strong wage inflation would likely have been more indicative of more than three possible US rate hikes during 2018.
Meanwhile, news that an initial agreement has been struck between German energy providers RWE and E.ON, is also supporting the market.
RWE is poised to sell its 76.8% Innogy stake to E.ON. In return RWE will gain the renewable energy divisions of both Innogy and E.ON, which will help it to diversify its energy reliance away from coal and gas-fired plants.
All three stocks were trading higher on the news:
- RWE shares rose 8.20% to €19.47.
- E.ON shares were 4.50% higher at €8.83.
- Innogy shares gained 12.83% to trade at €38.96.
Other stock movers
Other stocks news of interest saw Deutsche Bank shares move 0.34% higher to €13.08 after announcing a price range for the IPO of its asset management arm.
GKN shares were higher in morning trade after Melrose raised its offer for the firm. By the afternoon, however, GKN shares had given back those gains to change little changes from the open, down 0.05% at £434.90.
And, Air France KLM shares rose 2.05% to hit €9.54 on news it planned to be part of a consortium to bid on Air India.