European stocks have been able to rebound from the first weekly loss experienced in more than a month. Most of the technology companies and carmakers experienced gains. The benchmark stock gauge Stoxx Europe 600 Index jumped up by 0.3% and the same is currently at 304.34. On last week, the European stocks went down as investors debated when the scaling back of monetary stimulus by the US Federal Reserve will actually be put into place. On the other hand, another report came out showing the unexpected shrunk of the Chinese manufacturing industry thereby spreading more negativity for the European stocks. Incidentally, the equity markets of both UK and US were closed due to holidays on today.
According to the Fund Manager of GmbH, Raimund Saxinger, a strong correction has been witnessed particularly in US. It seems that some investors believe that the correction is over now and hence, they are well prepared to go back into the market. Saxinger added that today being a holiday for UK market played an important role in thinning down the liquidity. The total volume of shares changing hands on today was 60% less if compared with the average of the last 30 days. Out of the 17 Western Europe markets, 15 saw jumps on today. CAC 40 Index of France experienced a surge of 1%, whereas, DAX of Germany gained around 0.9%.
Among companies, shares of Vivendi increased by 2.8% to 15.60 Euros, marking its biggest gain since 20th March. Qatar Telecom (Now they have changed the name to Ooredoo) is currently competing with Emirates Telecommunications to buy Vivendi’s stake on Maroc Telecom. Both of these companies made binding offers in April and Vivendi wants to finish the deal by end of October.
The biggest carmaker in Italy, Fiat saw its shares jumping up by 4.4% and each share is now at 5.66 Euros. This is the highest price for it since August, 2011. Sergio Marchionne, the Chief Executive Officer will be asked by the Italian Government if any role is required to be played by the Government to help them retain their plants in Italy.
Club Mediterranee shares went ahead by 22% recording the biggest single day gain since October, 1989. Each share is now at a price of 16.95 Euros. The French tour operator has announced that it received takeover bids.