Europe close: Stocks move up ahead of French vote

24th Jun 2024 16:48

(Sharecast News) - European stocks extend gains on Monday as investors waited on key US price data later in the week and the results of the first round of voting in the French parliamentary elections on 30 June.

The pan-regional Stoxx 600 index was up 0.73% at 518.87.

All the main regional indices were higher with France's CAC 40 adding 1.03% a week out from the first round of national elections on 30 June.

The euro, oil and 10-year Bund yields were all in the black.

Polls put France's far-right National Rally party and its allies in the lead with some now anticipating the second round on 7 July might become a contest between NR and a coalition of left-wing parties. Incumbent president Emanuel Macron and his allies were trailing in third place.

Come Friday, the Department of Commerce would release a report on US personal consumption expenditures, which is the Federal Reserve's preferred measure of prices.

Policymakers in Sweden and Turkey were set to unveil rate decisions later during the same week.

Flash GDP readouts were scheduled in France, Italy and Spain, all also on Friday.

German business sentiment deteriorated in June, a closely followed survey released on Monday by the Ifo Institute showed.

The business climate index fell to 88.6 from 89.3 in May.

In equity news, Eurofins Scientific shares fell 16% after Muddy Waters, which recommends a "short" position on the stock, claimed the company had raised and then consumed billions of dollars supposedly to finance its growth.

"At best, Eurofins has a parasitic controlling shareholder who has been siphoning money from the company for two decades. However, we believe that Eurofins' account statements may contain significant overstatements of earnings, cash balances and other asset values. Eurofins is a company of oddities and contradictions," the hedge fund said.

Prudential shares gained 7% at one point as the insurance giant unveiled a $2bn share buyback after revising its free surplus requirement ratios.

Britvic shares fizzed as Carlsberg said PepsiCo had agreed to waive a change of control clause in its bottling arrangements with Britvic, potentially removing a hurdle from the Danish brewer's path to bid for the British company.

Hochtief was near the top of the Stoxx 600 throughout much of the session after Jefferies upgraded the German construction firm to 'buy' from 'hold'.

Belgian pharmaceutical company argenx surged 11% following FDA approval for its Vyvgart Hytrulo treatment for chronic inflammatory demyelinating polyneuropathy.