European Stocks Enjoy Best Weekly Gain in Five as Altice Surges
(Bloomberg) -- European equities posted their biggest weekly gain since early August on Friday, capping a roller-coaster week, with Altice Europe NV and Aryzta AG jumping on takeover news.
The Stoxx Europe 600 Index ended the session up 0.1%, with a slump in banks and travel shares offset by a surge in mining stocks. The benchmark rose 1.7% on the week. The FTSE 100 Index outperformed again on the day, up 0.5%, supported by recent weakness in the pound amid brewing worries of a no-deal Brexit.
Deals were in focus after Next Private agreed to buy Altice, sending the shares 24% higher, while Aryzta said it was in advanced talks with Elliott Management about a potential takeover, with its shares rising more than 12%.
European stocks have been stuck in a narrow range since mid-June. The rising euro has acted as a headwind for their relative performance to global shares, and the currency resumed its surge against the dollar after the European Central Bank said on Thursday there was no need to intervene.
“The market remains highly sensitive in the short term and prone to unexpected and negative news,” said Martin Utschneider, technical analyst at Donner & Reuschel Privatbank. “This was also the case with yesterday’s ECB press conference. Hedges - stop loss or profit-taking - should therefore continue to be strictly maintained or adjusted.”
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