EU STOCKS climb Monday

European stock markets were on track to snap a two-day losing streak on Monday, with shares of Elan Corp. PLC rallying after a takeover deal and Danone SA on the rise after a well-received earnings report. The Stoxx Europe 600 index added 0.6% to 300.59, after closing down 0.2% on Friday. France’s CAC 40 index  advanced 0.2% to 3,978.35. Germany’s DAX 30 index rose 0.5% to 8,282.30, while the U.K.’s FTSE 100 index traded 0.4% higher at 6,580.89.

 

Shares of Elan jumped 8.8% after health-care products group Perrigo Co. said it would buy the Irish biotech firm in a deal valued at $8.6 billion. Shares of Perrigo were up 0.7% in premarket trade. Shares of Danone climbed 3.2% after the yogurt maker confirmed its full-year targets and reported a 6.7% rise in quarterly sales.

 

This week the focus will be at BoE meeting results on Thursday with Asset Purchase Facility    is expected to remain at £375K, while key lending rate is set to left unchange at 0.5%. No changes are expected from the this week’s ECB meeting’s outcome at 11:45 GMT, Thursday. ECB Monetary policy statement and press conference will be the main focus.

 

Back in Europe, shares of Volkswagen AG picked up 0.9% after Berenberg initiated coverage of the car maker with a buy rating. In the same vein, shares of advertising major WPP PLC rose 2% in London after UBS lifted the firm to buy from neutral. Credit Agricole SA lost 2.2% after J.P. Morgan Cazenove cut the French bank to neutral from overweight.

 

 

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