German utilities overhaul spurs EU equities

German utilities overhaul spurs EU equities

On Monday, European equities rallied in early trade, reaching their highest value for nearly two weeks, underpinned by revenues among German utilities after the sector's major players uncovered an ambitious overhaul of the industry.

Innogy tacked on 16% after parent RWE as well as counterpart E.ON told that they would break up Germany's number one energy company by market value and have its assets divided up.

The given deal would provide E.ON with greater economies of scale in retail and power distribution, while RWE would get renewables. As a result, it will make it easier for both them to cope with the country’s fast shift to cleaner energy sources. E.ON and RWE, whose stock prices collapsed for the last decade, inched up respectively 11% and 4.6%.

Equities in utilities in other countries climbed up on optimism as for ongoing M&A in the industry.

Besides this, the Stoxx utility index tacked on more than 2% to lead sectorial gainers in the European Union, thus assisting the pan-European STOXX 600 index in edging up by 0.4% by 0812 GMT. That’s its most impressive outcome since February 28.

The DAX managed to gain 0.8% in Germany, while Britain’s FTSE edged up 0.6%.

Among top notch gainers was GKN, which demonstrated decent outcomes after Melrose stepped up its hostile bid for the British car engineer, attractive to investors, right after the previous week the company made a rival deal of its own.

The automotive sector index went up 0.7%, neglecting a tweet by American President Donald Trump in which he pledged to impose duties on European cars imported into the United States if the EU dares to retaliate over steel duties.

Just Eat appeared to be the greatest loser on the Stoxx. It headed south 5.1%, reacting to Deutsche Bank’s downgrade to "sell."



Asian stocks go up

On Thursday, Asian stocks rallied after the major US bank took a more accommodative stance at its policy gathering, although worries over US-China trade negotiations and decelerating global surged capped broad profits and suppressed some markets…

Latest news

Greenback edges down

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera