European shares are trading broadly in positive territory in the early afternoon Tuesday, as stocks are supported by deals news and other company announcements. Utilities continue to benefit from the German energy deal announced Sunday, while an analyst upgrade supports oil firms.
By 1315 BST, the EUROSTOXX 600 was 0.12% in the red, although the EUROSTOXX 50 gained 0.08%. The regional bourses were also a little mixed. The German DAX slipped 0.12%, the French CAC was 0.20% higher and the Spanish IBEX was 0.49% in the green.
Company news supports
The planned break up of energy business Innogy to be shared between RWE and E.ON continues to provide a boost to investors. E.ON shares rose 5.13% to €9.36, as the German utilities firm said it would raise dividends for 2018 and 2019.
Meanwhile, Total shares were also in the green after a Barclays analyst upgraded their rating on the French oil business. Total shares rose 1.34% to trade at €47.19.
And, European plane maker Airbus shares were 0.83% higher at €96.67 in the wake of news the firm conducted a share buyback process earlier in March.
Share fallers limit gains
While the indices were broadly positive, some company news failed to further support the boost.
Volkswagen shares reversed earlier gains to trade lower as the German car maker announced plans to expand its electric car production to 16 locations from the current three.
Volkswagen shares fell 0.35% to hit €158.02.
Another stock that gave back earlier gains was Nokia. Solidium, the Finnish government’s investment arm announced Tuesday it had bought a 3.3% stake in the telecoms equipment maker, for €844 million. After rising earlier in the session, Nokia shares lost 0.23% to trade at €4.80.
Continuing the trend, shares in beleaguered furniture and discount retailer Steinhoff International also reversed an earlier stock rise, after news it had reduced its stake in KAP Industrial to raise much needed funds. Steinhoff shares fell 1.33% to €0.30.