European shares soar as NAFTA deal lifts sentiment

Published: October 01, 2018 15:33:46 | Updated: October 03, 2018 12:19:56

European shares rose on Monday as optimism on the trade war front was lifted by a new US-Mexico-Canada agreement, which is helping world markets enter the fourth quarter on a positive footing.

At 0820 GMT, the euro zone benchmark .STOXX50E was up 0.4 per cent with most European bourses and sectors trading in positive territory.

Ryanair was the worst performer, down 7.5 per cent. The low-cost carrier’s fall weighed on the wider sector .SXTP which was one of the only ones in the red, down 0.6 per cent.

Peer Easyjet, Air France-KLM and BA owner IAG were down 4.1 per cent, 2.6 per cent and 1.4 per cent respectively, according to Reuters.

Germany’s Linde posted the highest rise, climbing 6.3 per cent after it received approval for its proposed $83 billion merger with Praxair PX.N from the Chinese antitrust authorities.

French supermarket group Casino was up 0.3 per cent after it said it had agreed to sell some property assets for 565 million euros ($655 million) to reduce debt levels that have worried investors.

Italian banks were up 0.5 per cent after suffering their worst fall in about two years on Friday on fears the populist government’s decision to increase its deficit target could threaten the long-term sustainability of its sovereign debt.

On Sunday, Italian daily La Repubblica reported that the European Commission was set to reject Italy’s budget plans in November and open a procedure against the country’s public accounts.

The Milan bourse was up 1.0 per cent, making it the best performer among European trading centers, as it rebounded from a 3.7 per cent drop on Friday.

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