Dealmaking supports European shares as Syria worries persist
MILAN: Fresh dealmaking activity helped support European shares in early trading on Thursday, although investors remained cautious on worries over the prospect of US military action in Syria.
The pan-European STOXX 600 index was flat in per centage terms at 0724 GMT, having lost 0.6 per cent on Wednesday, while the UK's FTSE and Germany's DAX were down 0.01 and 0.09 per cent respectively.
US President Donald Trump warned Russia this week of imminent military action in Syria over a suspected gas attack, declaring that missiles "will be coming" and lambasting Moscow for standing by Syrian President Bashar al-Assad.
"We may well see a military response by the end of the week, as the situation in Syria ramps up further, and this may well temper investor enthusiasm to buy back into the market ahead of the weekend," said CMC market analyst Michael Hewson.
However investors found some comfort in some merger and acquisition developments.
Shire rose 1.2 per cent after sources told Reuters Takeda had sounded out creditors for loans to help finance a possible bid for the British rare disease specialist.
Firstgroup spiked 9 per cent after news it rejected a takeover approach from Apollo, while Playtech rose 6.4 per cent after it agreed to buy Italian betting firm Snaitech in a $1 billion deal. Snaitech was up 14 per cent.
Sulzer rallied 16 per cent after the Swiss pumpmaker freed itself of US sanctions after authorities approved its buyback of shares that has reduced Russian oligarch Viktor Vekselberg's stake to less than 50 per cent. Sulzer's shares have lost 22 per cent in the last 3 days due to sanction worries.
In earnings, Carrefour fell 5 per cent following weak quarterly sales.
The pan-European STOXX 600 index was flat in per centage terms at 0724 GMT, having lost 0.6 per cent on Wednesday, while the UK's FTSE and Germany's DAX were down 0.01 and 0.09 per cent respectively.
US President Donald Trump warned Russia this week of imminent military action in Syria over a suspected gas attack, declaring that missiles "will be coming" and lambasting Moscow for standing by Syrian President Bashar al-Assad.
"We may well see a military response by the end of the week, as the situation in Syria ramps up further, and this may well temper investor enthusiasm to buy back into the market ahead of the weekend," said CMC market analyst Michael Hewson.
However investors found some comfort in some merger and acquisition developments.
Shire rose 1.2 per cent after sources told Reuters Takeda had sounded out creditors for loans to help finance a possible bid for the British rare disease specialist.
Firstgroup spiked 9 per cent after news it rejected a takeover approach from Apollo, while Playtech rose 6.4 per cent after it agreed to buy Italian betting firm Snaitech in a $1 billion deal. Snaitech was up 14 per cent.
Sulzer rallied 16 per cent after the Swiss pumpmaker freed itself of US sanctions after authorities approved its buyback of shares that has reduced Russian oligarch Viktor Vekselberg's stake to less than 50 per cent. Sulzer's shares have lost 22 per cent in the last 3 days due to sanction worries.
In earnings, Carrefour fell 5 per cent following weak quarterly sales.