European Shares Rise As Merkel Averts Coalition Crisis

European stocks were broadly higher on Tuesday after German Chancellor Angela Merkel reached a deal with her interior minister over the migration policy, helping avert a political crisis in the country.

The pan-European Stoxx Europe 600 index was up 0.8 percent at 379.59 in late opening deals after declining 0.8 percent Monday on concerns over global trade and political instability in Germany.

The German DAX was up over 1 percent and France’s CAC 40 index was gaining 0.9 percent while the U.K.’s FTSE 100 was rising half a percent ahead of the July 6 deadline for the Trump Administration’s planned imposition of tariffs on Chinese imports.

Societe Generale climbed 1.4 percent in Paris after it agreed to acquire Commerzbank’s Equity Markets & Commodities business. Shares of Commerzbank advanced 2.3 percent.

Sanofi was rallying 2 percent after closing a strategic transaction with Evotec to integrate its infectious disease unit including licensing-in the majority of Sanofi’s infectious disease research portfolio.

Shares of BE Semiconductor Industries N.V. slumped nearly 9 percent after the Dutch manufacturer of assembly equipment for the semiconductor industry trimmed its sequential growth forecast for second-quarter revenues.

Swiss iron ore pellet producer Ferrexpo tumbled 3 percent after its total pellet production for the first-half of 2018 declined 1.2 percent to 5.10 million tons, from 5.16 million tons in the previous year, reflecting a planned 65 day pellet line refurbishment.

Glencore, which is facing U.S. money laundering probe, plunged 9 percent.

In economic releases, Eurozone retail sales remained unchanged in May as the increase in food sales was offset by a decline in non-food products turnover, data from Eurostat showed. Sales were expected to gain 0.1 percent, reversing a 0.1 percent fall logged in April.

The U.K. construction output grew at the fastest pace in seven months in June, survey data from IHS Markit and Chartered Institute of Procurement & Supply showed.

The construction Purchasing Managers’ Index rose to 53.1 from 52.5 in May. The latest reading pointed to the sharpest rise in construction output since November 2017.

by RTTNews Staff Writer

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