© Reuters. European shares bounce back helped by bank merger talk

MILAN (Reuters) – European shares recovered on Monday with merger talk lifting the battered banking sector and helping offset lingering worries over a slowdown in the global economy, while a crash of a Boeing (NYSE:) 737 MAX hit shares in its French engine maker Safran (PA:).

The pan-European index was up 0.3 percent by 0831 GMT, having hit its lowest since Feb. 21 on Friday, while Germany’s was up 0.4 percent.

London’s export-heavy added 0.7 percent, outperforming its euro-zone peers boosted by stronger oil prices. [O/R] Sterling was also weaker amid uncertainty about the nation’s exit from the European Union as Parliament prepared to vote on the government’s Brexit deal. [FRX/]

German lender Commerzbank (DE:) was the biggest gainer on the STOXX 600, up 4.1 percent, following fresh reports at the weekend over a possible tie-up with Deutsche Bank (DE:) , which also rose 2.1 percent.

The management board of Deutsche has agreed to hold talks with Commerzbank on the feasibility of a merger, a person with knowledge of the matter said on Saturday.

Merger hopes lifted Charter Court Financial and OneSavings Bank up 6.6 percent and 8.4 percent respectively after the two UK challenger banks said they were in advanced talks about a possible all-share tie-up.

Safran fell 1 percent following Sunday’s fatal crash of a Boeing 737 MAX 8 operated by Ethiopian Airlines. The 737 MAX 8 uses LEAP-1B engines made by a joint venture of General Electric (NYSE:) Co and Safran SA.

Shares in Boeing rival Airbus edged up 0.4 percent, while Frankfurt-listed Boeing shares were down 7.6 percent.

Among the top fallers was Pandora, down 6.4 percent with traders citing a downgrade to sell from Carnegie.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link