European Stocks Gain on Trump Health Optimism, Deal Activity
European Stocks Gain on Trump Health Optimism, Deal Activity
(Bloomberg) -- European stocks rose Monday on optimism over U.S. President Donald Trump’s health amid a flurry of merger and acquisition activity.
The Stoxx Europe 600 Index closed up 0.8%, completing a third day of gains. Telecoms rallied after Vodafone Group Plc said it received consent from its lenders concerning the merger of Indus Towers Ltd. and Bharti Infratel Ltd.
White House Chief of Staff Mark Meadows said a decision on Trump’s release from the hospital will be made Monday, as people familiar with the matter cautioned that any such move was unlikely before Tuesday.
“Clearly President Trump’s Covid-19 will continue to affect markets, in terms of uncertainty and election odds,” Legal & General Investment Management Global Equity Strategist Lars Kreckel said by email. “Friday was the best test case so far on how markets might react to a Biden victory in the election,” said Kreckel. “And the verdict is: equities down a bit, but a lot of rotation beneath the surface.”
Monday’s gain followed the Stoxx 600’s biggest weekly rise since early August, despite the uncertainty spurred by Trump’s diagnosis. Investors are waiting for good news on U.S. virus relief, with House Speaker Nancy Pelosi optimistic on Friday, and Trump tweeting from hospital at the weekend that a deal needs to get done.
Weir Group Plc surged 16% after agreeing to sell its oil & gas division to Caterpillar Inc. Meanwhile, Cineworld Group Plc slumped 36% after the group said it will suspend operations at all its U.S. and U.K. theaters due to the pandemic.
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