6:17 AM, Feb 27, 2017 — European equity markets were mixed on Monday morning as financials gained, oil prices rose and traders sought to digest fresh developments on several major mergers.
West Texas Intermediate crude oil, the main US oil benchmark, was 0.6% higher at $54.32 per barrel while Brent crude, the main international gauge, was up by 0.8% at $56.76 per barrel at the time of writing. The movements come despite government data showing last week that US inventories of crude oil rose for a seventh consecutive week in the prior week period.
In equities, Deutsche Boerse declined 5% and shares in the London Stock Exchange (LSE) fell 3.2% after the operator of the London bourse said it was “highly unlikely” it would be able to meet additional antitrust conditions set by European antitrust regulators. Its European rival, Euronext, fell 3.5%. The LSE last month said it agreed to sell the French arm of the clearing house LCH to Euronext in order to gain regulatory approval for the planned tie-up with the German exchange operator.
Intesa Sanpaolo, Italy’s biggest lender, gained more than 5% after it abandoned plans for a merger with insurer Generali, saying the combination would not create value for its shareholders, according to news reports. Generali fell 4.3%. UK homebuilder Persimmon fell 0.7% even after saying underlying profit before tax increased 23% in 2016 to 782.8 million pounds ($973 million.)
Associated British Foods, which owns the network of Primark fashion stores, fell 0.8% in London even after the company said in a trading update that in the half year ending on March 4 it expects “excellent progress” in adjusted operating profit and adjusted earnings per share for the group.
German sportswear maker Adidas gained 3.5% and Vonovia, Germany’s largest housing association, dropped 1% in Frankfurt. French lenders Credit Agricole and Sociate Generale advanced 1.4% and 1% in Paris, respectively.
The pan-European STOXX 600 index fell 0.2% and the euro-region blue-chip STOXX 50 index was flat. The DAX in Frankfurt rose 0.1% and the FTSE 100 in London increased 0.2%. The CAC 40 in Paris was little moved.