European Stocks Held, easyJet Soars
European stock markets were flat on Monday (June 7th) after posting strong gains the previous week. Investors are now monitoring a number of new corporate actions, particularly the proposed acquisition of British airline easyJet.
The pan-European STOXX 600 index was at 652.84 at 07:10 GMT. Last Friday, the index recorded its best weekly performance since mid-May. However, following that rally, the market has begun to move more cautiously.
easyJet shares jumped 11% after the British low-cost airline agreed in principle to a higher acquisition offer from US investment firm Castlelake. The offer values easyJet at up to £5.5 billion, or approximately US$7.34 billion. This news also boosted the travel and leisure sector by around 1%.
Previously, European stock gains were largely supported by easing tensions in the Middle East and falling oil prices to near pre-conflict levels. However, with no major breakthrough in peace talks between the US and Iran, investors will continue to monitor geopolitical developments in the region.
Elsewhere, Thales fell 1.4% after the French defense group agreed to buy the Gorgé family's stake in drone technology company Exail ahead of a planned offering for the remaining shares. Meanwhile, Ferrari rose 2% after launching a limited-edition 12-cylinder model with a manual transmission, aimed at fans of classic gasoline-powered sports cars. (asd)*
Source: Newsmaker.id