Europe close: Stocks reverse earlier losses to end up

17th Jun 2024 17:13

(Sharecast News) - European shares reversed earlier losses to end up on Monday, with Topdanmark surging ahead after Finnish insurer Sampo agreed to buy its Danish rival for $4.7bn.

The benchmark Stoxx 600 index closed up 0.1% at 511.49, Germany's DAX rose 0.4% to 18,068.21 and France's CAC 40 ended up 0.9% at 7,571.57.

Chris Beauchamp, chief market analyst at IG, said: "European markets have risen off the lows of last week but there's little enthusiasm among investors for the region given the prevailing political uncertainty.

"Dip buyers, particularly in French stocks, may well opt to wait until after the election."

Stocks had started the session in the red as investors digested mixed economic data from China and the start of the French national election campaign.

In China, May industrial output came in lower than expected, while the country's troubled property sector showed no signs of rebounding. Retail sales beat forecasts thanks to a holiday boost.

In equity markets, Sampo, which already owns 48.5% of the Danish insurer, said its offer represented a 27% premium per Topdanmark share based on Friday's closing price. Sampo shares were down on the news, but Topdanmark jumped 22%.

"By combining the businesses in a fully integrated Nordic operating platform, we can unlock growth and attractive synergies that will strengthen our position as a leading Danish P&C insurer," said Sampo chief executive Torbjorn Magnusson.

Shares in Carl Zeiss Meditec tumbled as the German Medical company issued a profits warning.