European shares rise as EU leaders reach agreement on refugee deal

European shares are higher amid support from an EU agreement on refugees and also in the wake of an upbeat Asian session.

European shares rise as EU leaders reach agreement on refugee deal

European shares are higher Friday as investor sentiment picked up following news EU leaders have agreed a refugee plan. The deal is likely seen as taking pressure off German Chancellor Angela Merkel and confirming some stability for her governing coalition.

An upbeat Asian market also helped lift the tone.

By 1145 BST, the EUROSTOXX 600 was up 1.04%, while the EUROSTOXX 50 gained 1.20%. Regional bourses were also positive. The German DAX rose 1.13%, the French CAC was 1.19% higher and the Spanish IBEX was 0.87% in the green.

EU leaders agree refugee plan

After being set a Sunday deadline by Merkel’s coalition partner to agree a plan on refugee’s in the region, EU leaders worked through the night to find level ground on the divisive issue.

The details of the agreement include that leaders have agreed to strengthen the control of the EU’s borders. New “controlled centres” for asylum seekers will also be created where migrants will then be redistributed across the bloc.

Finding common ground on this key issue has helped support a relief rally among stocks Friday.

Stock movers

Against that positive backdrop, there were some interesting stock movers in Friday morning trade.

CaixaBank shares moved higher after the Spanish bank announced it had sold its real estate business. The stock was 3.76% higher at €3.72.

Staying with the financials, Deutsche Bank shares were also positive, rising 0.76% to hit €9.13, despite failing US Fed stress tests, again.

Novartis shares were in the green after the Swiss drug maker announced a share buyback plan of up to $5 billion. The firm also said it is set to spin-off its eyecare business, Alcon. The stock gained 2.87% to trade at CHF74.54.

Moving in the opposite direction, meanwhile, were Galapagos shares, which slid 6.73% to €77. The Belgian business reported disappointing drug trail results and RBC Capital analysts reduced its target price for the stock to $94 from $100.

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