German stock market sets new record as Bayer rides on deal news
European shares rose mainly on Friday, as shares of Bayer AG rallied on news that the German conglomerate reached a multibillion-euro deal to sell part of its business, which allowed DAX to d ‘set a new historical record.
Mining stocks advanced after bullish import data from China, a major consumer of metals.
What actions do: The Stoxx Europe 600 SXXP index,
added 0.3% to 391.55 and was up 0.5% for the week. The pan-European benchmark has recorded five consecutive weekly gains.
Boosted minors: The Stoxx 600 SXPP Core Resource Index,
jumped 2.7% on Friday as shares of mining companies surged higher. The moves came after a report showed Chinese imports rose 18.7%, beating expectations, with exports also increasing. China is a major buyer of industrial and precious metals.
ArcelorMittal SA MT shares,
jump 7.4%, Rio Tinto PLC RIO,
added 3%, and Glencore PLC GLEN,
increased by 2.4%.
“Seasonal factors helped drive year-over-year trade growth over the past month. But there are also signs of a real recovery in domestic demand, perhaps due to efforts to boost activity ahead of the Party Congress, ”said Julian Evans-Pritchard, Chinese economist at Capital Economics, in a note.
Communist Party officials will meet in Beijing on October 18 for the week-long, high-profile 19th Party Congress, where they will unveil plans for the economy.
Stock movers: Bayer AG BAYN,
gains 1.2% after BASF SE BAS,
said it has reached a deal to buy significant parts of Bayer’s seeds and herbicides business for € 5.9 billion ($ 6.99 billion). BASF shares slipped 0.5%.
GKN PLC shares UK: GKN
plummeted by 10%. The engineering group said on Friday that its third-quarter margin performance was lower than a year ago, mainly due to operational challenges in its North American aerospace division.
Provident Financial PLC PFG,
rose 12.4% after the lender said its Vanquis Bank division saw good growth in the third quarter and was optimistic about the outlook for its Satsuma online lending unit. Provident, who is struggling with issues in its home loan unit, has confirmed that it will not pay a full-year dividend for 2017.
In the currency market, the euro EURUSD,
was trading at $ 1.1844, compared to $ 1.1832 Thursday night in New York.
Regional repositories: the German DAX 30 DAX index,
added 0.1% to a new high at 12,991.87, marking a weekly gain of 0.3%. The German benchmark has climbed for six consecutive weeks. The French CAC 40 PX1 index,
slipped 0.2% to 5,351.74. For the week, the index fell 0.2%, ending a four-week winning streak.
In London, the FTSE 100 UKX index,
fell 0.3% to 7,535.44, weighed down by GBPUSD,
surpassed $ 1.33 for the first time in nearly two weeks. Sterling rose after The German newspaper Handelsblatt Thursday evening reported that the European Union could offer Britain a two-year transitional Brexit deal. The UK benchmark index posted a weekly gain of 0.2% and posted four consecutive weekly increases.