European shares are higher Tuesday, after German Chancellor Merkel has worked out a migration deal with her Governing coalition partners and averted another political crisis in the country. The new agreement was enough to encourage the country’s interior minister from resigning.
By 1300 BST, the EUROSTOXX 600 was 1.11% higher, while the EUROSTOXX 50 had gained 1.41%. Regional bourses were also upbeat. The German DAX was 1.52% in the green, the French CAC rose 1.12% and the Spanish IBEX moved 1.27% into positive territory.
German immigration deal
The subject of immigration across the EU and in Germany has been a sore point for Merkel’s coalition Government, since day of their partnership. And, after two days of crunch talks, it appears that a deal that is agreeable to both parties of the coalition, has finally been reached.
The German interior minister Horst Seehofer has now rescinded his resignation threat after the Governing parties finally reached a compromise, which will see some tighter immigration controls for Germany put in place.
Merkel described the new agreement as “a really good compromise”. It’s one that will also help regulate the movements of migrants within the EU as a whole.
Investors were buoyed by the development, although an air of caution remains amid ongoing and worrying, US trade tensions.
Amid the political backdrop, there have also been some notable stock movers across the European trading session so far Tuesday.
Societe Generale shares are up 0.94% at €36.38 after announcing the purchase of Commerzbank’s EMC business. The deal works well for both banking groups as it expands SocGen’s presence in certain markets and helps Commerzbank reduce its non-core assets.
Sanofi shares are also in the green after the French pharma sealed a deal with Evotec on its infectious diseases unit. Sanofi shares rose 1.96% to trade at €70.15.