EUROPE MARKETS: European Shares Choppy As Bayer, Fiat Come Under Pressure
May 23 2016 - 6:30AM
Dow Jones News
By Carla Mozee, MarketWatch
Bayer drops after $62 billion bid for Monsanto
European stocks were choppy Monday as investors assessed
eurozone economic data and as shares of Bayer AG and Fiat Chrysler
Automobiles NV struggled.
The Stoxx Europe 600 edged up 0.1% to 338.29. It had been down
by as much as 0.8% just before data showed slowing in economic
activity in the eurozone
(http://www.marketwatch.com/story/eurozone-pmis-show-economic-activity-slowing-2016-05-23)
in May. Markit said its eurozone composite purchasing managers
index, fell to 52.9. Economists surveyed by The Wall Street Journal
last week had expected a rise to 53.2.
Major equity indexes flipped higher as the euro pulled back to
$1.1201 from around $1.1222 ahead of the report. Euro strength can
make prices for European exports more expensive for holders of
other currencies to buy.
"Any indications that the [European Central Bank] is ready to up
the ante in terms of the assets purchased as well as perhaps being
more creative in respect of the variety of assets could well be the
catalyst needed to push the single currency lower," said Brenda
Kelly, head of analysts at London Capital Group, in a note.
With heavy exposure to exporters, Germany's DAX 30 had risen by
as much as 0.6% as the euro slipped. But the index eventually
dipped back down by 0.1%.
At the bottom of the DAX were shares of Bayer AG (BAYN.XE). They
dropped 2.7% after the drug and chemicals maker said it made an
all-cash offer to buy Monsanto Co. (MON) for $62 billion, or $122 a
share
(http://www.marketwatch.com/story/bayer-makes-62-billion-bid-to-take-over-monsanto-2016-05-23).
The bid values Monsanto at 37% over the company's May 9 closing
share price, the day before it made a written proposal to the U.S.
company, said Bayer.
Meanwhile, shares of Fiat Chrysler Automobiles NV (FCA.MI) were
down 3.4% after a report by German newspaper Bild
(http://www.bild.de/bild-plus/geld/wirtschaft/abgas-skandal/auch-fiat-betruegt-mit-illegaler-software-45905214,var=a,view=conversionToLogin.bild.html)
that German regulators suspect the auto maker of using illegal
software to cheat on emissions tests. Fiat last week declined to
meet with regulators to discuss the issue.
Fiat weighed on Italy's FTSE MIB , which was down 1.7% to
17,516.45.
Indexes: Greece's Athex Composite picked up 1% at 646.42 after
Greek lawmakers Sunday approved new tax and austerity reforms
(http://www.marketwatch.com/story/greek-parliament-approves-austerity-vote-2016-05-22)
in an effort to receive more bailout money from its country's
creditors.
France's CAC 40 was off 0.3% at 4,339.17, and the U.K's FTSE 100
narrowed its loss to 2 points at 6,154.42. Spain's IBEX 35 shed
0.7% at 8,712.10.
The Stoxx 600 on Friday rose 1.2%
(http://www.marketwatch.com/story/european-shares-rise-as-oil-prices-gain-2016-05-20),
locking in a second straight weekly gain for the pan-European
index.
Movers: Cie. Financière Richemont (CFR.EB) lost 2.5% in the wake
of ratings downgrades to neutral at both Citi and J.P. Morgan. The
moves come after the Cartier parent last week issued a gloomy
outlook for the luxury market.
Ryanair Holdings PLC shares were up 1.5% as the budget airline
said yearly sales rose 18% and profit climbed 43%
(http://www.marketwatch.com/story/ryanair-warns-profit-growth-will-slow-2016-05-23).
But the company also said profit growth would slow this year.
(END) Dow Jones Newswires
May 23, 2016 06:15 ET (10:15 GMT)
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