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European shares end higher

European shares end higher

European shares rose on Wednesday, led by media stocks, after British Sky Broadcasting reported surprisingly strong customer take-up and investors speculated about bids in the sector following News Corp.'s move for Dow Jones.
The U.K. FTSE 100 index closed up 1 percent to 6,484.50, the German DAX Xetra 30 index rose 0.6 percent to 7,455.93 and the French CAC-40 index climbed 0.5 percent to 5,990.13.
U.S. indexes got off to a positive start, helping shore up sentiment in Europe.
"Obviously we have had a good run. The markets have surprised with their strength," said Philip Lawlor, a portfolio strategist at Nomura International.
Shares in satellite broadcaster BSkyB rose 5.5 percent after key performance indicators generally exceeded market expectations in the third quarter. Earnings dropped 6 percent while revenue rose 9 percent.
Dutch publisher Wolters Kluwer rose 2.8 percent while Pearson fell 3.4 percent to hand back some of Tuesday's gains. Pearson shares had risen after News Corp. disclosed it had made an unsolicited takeover bid for Dow Jones, the publisher of The Wall Street Journal.
Wolters Kluwer didn't trade on Tuesday due to the May Day holiday.
"This deal is likely to stimulate interest in the media sector after having underperformed the market by 5 percent over the last month, although we would caution that this is a special situation and a special buyer for strategic reasons," said analysts at Credit Suisse.
More potential deal news focused on the stock exchanges. Shares of NYSE Euronext dropped 2.9 percent after it disclosed that it's entered into a US$3 billion (euro2.2 billion) syndicated revolving credit facility. That has prompted speculation that it may gate-crash Deutsche Boerse's agreed US$2.8 billion (euro2.1 billion) acquisition of the International Securities Exchange. Deutsche Boerse shares dropped 3.2 percent.
Miners also put in a strong performance, with shares in Lonmin up 7.7 percent after it posted a 63 percent increase in first-half pretax profit.
Credit Suisse dipped 0.8 percent after it said that it's expecting increased market volatility in the coming months, meaning that market corrections shouldn't be ruled out. The Swiss banking group also said first-quarter net income rose 5 percent, topping market forecasts.
Shares in Persil washing-powder maker Henkel rose 2.7 percent after it said first-quarter profit rose 14 percent while sales rose 6.2 percent on a strong performance from its laundry products.
German tire maker Continental rose 3 percent after saying its first-quarter profit rose 22 percent, with sales up 10 percent.
Insurer Allianz ended flat after it said its first-quarter net income almost doubled after capital gains.
Shares of Danish pharmaceutical producer Novo Nordisk rose 7.6 percent after it reported first-quarter profit rose 41 percent after strong sales growth.
Swedish telecom company Teliasonera,which has recently been granted extensive rights for the Eurovision song contest, saw its shares fall 5.9 percent after the Swedish government said that it intends to sell an 8 percent stake in the company.
Adidas shares fell 1.9 percent after UBS downgraded the sportswear maker to neutral from buy, saying that for the company to trade at multiples similar to those of peers Puma and Nike, it needs to show more concrete signs of a turnaround at Reebok and hence a reduction in the risk premium.
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Sarah Turner is a correspondent of Dow Jones Newswires.


Updated : 2021-05-10 04:53 GMT+08:00