|Day's Range||7,448.90 - 7,629.70|
|52 Week Range||5,814.50 - 10,100.20|
Spanish telecom MasMovil Ibercom SA on Monday said it has received a $3.3 billion offer from a group of private-equity buyout firms.
(Bloomberg) -- The most audacious fiscal plan in eurozone history is creating bullish hopes among bankers, traders and asset managers from Zurich to London.The European Commission’s 750 billion-euro ($825 billion) package of grants and loans is raising the specter of deeper fiscal integration among investors, who are conjuring scenarios few considered even just weeks ago. It’s fueling an optimistic mood in the market and helping riskier assets climb higher.Borrowing costs for Italy and Spain have started to come down, and the Stoxx Europe 600 Index is poised to beat the S&P 500 for a second week in a row. Spain’s IBEX 35 is up 7.7% since Monday.The “mother of all triggers” for European financial markets would be a transfer union, one that narrows the gap between richer countries, said Sylvain Goyon, a strategist at Oddo BHF, a Franco-German financial services group.That would also heal the rifts that threaten the euro, he said, adding that “the cost of capital would converge towards that of the U.S.” He called the bailout a “game-changer” and recommended investors short U.S. equities in favor of European stocks.A Radical Plan, and $2.6 Trillion, Brings Europe Back From AbyssTo be sure, bailout package from the European Commission doesn’t involve full mutualization of debt, and still needs approval from some skeptical nations. Austria, Denmark, the Netherlands and Sweden have signaled their resistance and the package needs approval from the 27 EU governments, whose leaders will meet June 19.There’s no sign yet that the stimulus package is anything more than a one-off response to an unprecedented crisis. Even so, investors are viewing it with a bullish lens.“It’s completely new territory for the European Union,” Michael Strobaek, global chief investment officer at Credit Suisse Group AG, said in a Bloomberg TV interview. “And that would make the European Union as an investment much more attractive for global investors.”That would represent a shift for European markets, which have been unpopular compared with the U.S. For example, European equity funds suffered from outflows more than any other major region this year, losing about $31 billion, according to data from EPFR Global and Bank of America Corp.Bond Buyers Toast EU Ambition in Moment They Were Waiting forGary Kirk, a money manager at TwentyFour Asset Management in London, which oversees 17.8 billion pounds ($22 billion), is sticking with his U.S. bias. “It’s a bit early to get overly excited,” said Kirk, who’s waiting to see how the details are hammered out and whether it will pass muster with more austere governments in north Europe.And betting on Europe has led to disappointment time and time again. Even before the pandemic, markets have long been weighed down by cyclical companies, banks, automakers and energy producers. The region lacks the FAANG tech darlings that powered gains in the U.S.“The EU fiscal package is certainly helpful,” said Michael Metcalfe, head of macro strategy at State Street Global Markets. “However, since the current global environment still favors certain sectors, tech in particular, this will hamper a full catch-up with U.S. assets.”In credit, Mizuho International Plc strategists see gains ahead for bonds of banks and companies, even those with junk ratings. In a recent note, they went long on investment-grade corporate debt, and estimated the yield versus government debt could converge to 120 basis points from about 170 basis points currently.“With the release now of the European Commission’s plan for covid recovery, we see there being room for further positivity in eurozone risk assets,” according to Peter Chatwell, head of multi-asset strategy at Mizuho.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In a press conference on Sunday, Spanish Prime Minister Pedro Sánchez said the government will seek to extend one of the strictest lockdowns outside of China to April 11, with a vote in Congress expected Wednesday.
European stock markets headed lower on Wednesday, as investors weighed up plans by governments to prevent economic collapse from the coronavirus pandemic and the EU announced borders would close to stem the outbreak.
European stocks rose Friday, rebounding from an historic losing day Thursday, as more government support appeared for hard-hit economies in the region, while several exchanges banned short selling of hard-hit Spanish and Italian equities.
The London Stock Exchange on Friday announced a ban on short selling -- or a bet of shares falling -- of Italian and Spanish stocks listed on that exchange, while Borsa Italiana and Spain's CNMV enacted a similar ban on stocks in those countries. It comes after a brutal selloff for global equities, and the worst day since the Black Monday fall of 1987 for the Stoxx Europe 600 index. The FTSE MIB Italy index slid 15% on Thursday, while the Spain IBEX 35 index dropped 14%. Those indexes were up nearly 5% and 3.7%, respectively on Friday.
Wild swings marked Europe’s trading day on Tuesday, as investors drove up shares only to step back later in the session.
Investing.com -- Yields on Spanish government bonds rose and the premium over the benchmark German bond widened after acting Prime Minister Pedro Sanchez invited the populist left-wing Unidos Podemos party to form a coalition government. It's the first time that Podemos, which has loudly dissented against the euro zone's fiscal policy in the past, would be represented in government at the national level.
Investing.com -- The escalation of violence in Hong Kong over the weekend has cast a pall over European stock markets on Monday, reinforcing a “risk-off” move that was already underway thanks to comments from the U.S. playing down the chances of a mutual reduction in import tariffs with China.
Major European indices trending lower on the back of weak economic data out of Europe. 178-year old travel company Thomas Cook collapses. WeWork IPO shelved