European Shares Advance; Italian Lenders Gain After Poll

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European Shares Advance; Italian Lenders Gain After Poll

European stocks soared to levels last seen in 2008 as Italian banks jumped after Prime Minister Matteo Renzi’s party won European Parliamentary elections.

An index of European banks recorded the second-best results on the Stoxx 600, with Italian banks including UniCredit SpA propelling gains. Atos increased 5.6% after the French provider of computer services declared intentions to take over competitor Bull for around $845 million.

Getinge AB dropped 9.6% as the Swedish manufacturer of hospital equipment pushed back its investor day following negotiations with the US Food and Drug Administration, Bloomberg reported.

The Stoxx Europe 600 Index ascended 0.5% to 343.34 as of 2:16 pm in London. The blue-chip measure has gone up 8.1% from a February 2014 low, in the wake of increased deals and as European Central Bank President Mario Draghi said easing of monetary measures was possible if necessary.

“Renzi being confirmed has increased confidence to play Italian assets ahead of the ECB meeting. European stocks are pushing higher on the back of investors’ anticipation that the ECB will have to announce stimulus measures at their June 5 meeting,” said Benedict Goette of Zurich-based Compass Capital AG.

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Daimler AG added 2% to 69.49 euros. Reports by Les Echos indicated that a new car under the Smart brand was being looked at among other projects by Renault SA, Nissan Motor Co and Daimler. However, the paper did not reveal its sources. Renault gained 1.4% to 69.92 euros.

Getinge went down to 172.20 kronor. Chief executive officer Johan Malmquist said on Monday that ongoing talks with the FDA could result in fines. Malmquist added that its investor day may not take place until after summer because the FDA discussions could take several months.

According to MarketWatch, France’s CAC 40 jumped 0.3% to 4,508.72. The Athex Composite of Greece hit 1,180.30 after surging 0.8%.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com