European shares are higher Monday, reversing a portion of last week’s declines as auto stocks are boosted by a Bloomberg report that China is set to halve its car purchase tax. Some deals news is also supporting stocks across the region.
By 1530 BST, the EUROSTOXX 600 was up 1.23%, while the EUROSTOXX 50 had gained 1.03%. Meanwhile, regional bourses were also brighter. The German DAX was 1.60% in the green, the French CAC rose 0.80% and the Spanish IBEX was 1.34% higher.
Auto shares climb
European car shares have gained ground Monday, following a Bloomberg report that China is considering cutting its car sales tax by 50%, as the escalating trade war with the US threatens to weigh on economic growth.
Following that as yet unconfirmed report, European listed auto stocks have climbed higher:
- BMW shares rose 3.40% to €77.57.
- Daimler shares were up 4.11% to hit €53.48.
- VW shares gained 5.54% to trade at €144.46.
- Fiat shares increased 3.38% to €14.44.
- Peugeot shares climbed 3.99% to €21.39.
Banks stocks also offered support across the indices, bolstered by better-than-expected earnings results from HSBC earlier, Monday.
Other stock movers
Aside from the boost from the auto and banking industries, other stocks were also in positive territory across Europe.
Atlantia shares are higher after completing a joint deal with Spanish builder ACS to buy toll operator group Abertis. The deal cost a total of €16.5 billion and sees a new holding company owning the operator split between Atlantia, who owns 50% plus one share, ACS who owns 30% and Hochtief who owns 20% less one share.
Novartis shares, meanwhile, are 2.50% in the green at €87.00 after sharing the news it is working with US pharma giant Pfizer to develop a drug to combat a complex liver disease, non-alcoholic fatty liver disease, NASH.