Europe open: Shares up on Asia data, BBVA deal
European shares started the week higher, boosted by positive economic data in Asia and news that Spanish bank BBVA was selling its US division for $11.6bn.
The pan-European Stoxx 600 index was up 0.76%, with Spain’s IBEX powering ahead by 2.41%. All other major bourses followed suit while Dow Jones futures were up 282 points.
China’s industrial production soared 6.9% in the 12 months to October and retail sales were up 4.3%. Japan reported a better-than-expected 5% rise in third quarter GDP, while 15 Asian countries also signed the free-trade Regional Comprehensive Economic Partnership.
In the UK Brexit trade talks enter yet another “crunch week” as Prime Minister Boris Johnson, who has suffered from Covid-19, was ordered into self-isolation after meeting a member of parliament who contracted the virus.
“Brexit talks also look set to continue beyond the end of this week, with the same fault lines of fishing and level playing field provision the main obstacles to progress. It now seems likely that the deadline for the talks to end this week is likely to get pushed out further with a new deadline of December 10 being talked about,” said CMC Markets analyst Michael Hewson.
In corporate news, BBVA soared 17% after agreeing to sell its US operations to PNC Financial Services for $11.6bn.
The news sent Banco Sabadell up 12% on renewed hopes of a takeover by BBVA. Banco Santander shares rose 5%.
Vodafone Group shares were up 4% as the mobile phone operator reported a 1.9% fall in half-year earnings, but maintained its dividend and reiterated free cash flow and core earnings guidance.