European stocks climb
Thursday, 5 July 2007
LONDON, July 4 (AFP): Europe's main stock markets rose Wednesday on the back of takeover talk in the hotels sector, sparked by a huge private equity-backed deal for US group Hilton Hotels Corpora-tion.
Trading remained cautious, however, ahead of Thursday's interest rate decisions from the European Central Bank and the Bank of England, and with US markets shut Wednesday for the Independence Day holiday.
In European trade, London's FTSE 100 index of leading shares rose 0.20 per cent to 6,653.20 points, Frankfurt's DAX 30 index gained 0.43 per cent to 8,085.27 points and in Paris the CAC 40 climbed 0.33 per cent to 6,089.60.
The DJ Euro Stoxx 50 index of leading eurozone shares increased by 0.33 per cent to 4,527.79 points.
US stocks advanced Tuesday in pre-holiday trade as Wall Street investors toasted the latest deals including US-based Kraft's offer for Danone's LU biscuits unit and a Canadian mining tie-up.
Late Tuesday, Hilton Hotels Corporation revealed it was to be bought by private equity giant Blackstone Group in an all-cash deal worth US$26 billion (19 billion euros).
"The merger and acquisitions theme is very prominent again following the announced deal in the US overnight," said HSBC equity strategist Robert Parkes Wednesday, in reference to the Hilton buyout.
"That's put the hotel/leisure sector in play."
The news has sparked speculation about similar deals in Europe Wednesday.
In Paris, shares in French hospitality group Accor rocketed 7.20 per cent to 69.57 euros.
InterContinental Hotels Group saw its share price jump 5.21 per cent to 1,323.50 pence in London.
And in Madrid, Spanish peer NH Hoteles saw its stock rally 3.42 per cent to 16.61 euros.
In Frankfurt, Deutsche Telekom shares rose 0.66 per cent to 13.76 euros.
German regional daily Rheinische Post reported Wednesday that T-Mobile, the group's mobile phone arm, had beaten rival Vodafone in the battle to win the marketing rights for Apple's iPhone in Germany.
Across the Atlantic Tuesday, the Dow Jones Industrial Average closed up 0.31 per cent at 13,577.30 points and the Nasdaq composite finished up 0.48 per cent at 2,644.95 just after the closing bell.
The broad-market Standard and Poor's 500 index rose 0.36 per cent to a close of 1,524.87 points.
The US stock market closed early Tuesday ahead of Wednesday's Independence Day, one of America's biggest annual holidays. Trading in US markets will resume Thursday morning.
Trading remained cautious, however, ahead of Thursday's interest rate decisions from the European Central Bank and the Bank of England, and with US markets shut Wednesday for the Independence Day holiday.
In European trade, London's FTSE 100 index of leading shares rose 0.20 per cent to 6,653.20 points, Frankfurt's DAX 30 index gained 0.43 per cent to 8,085.27 points and in Paris the CAC 40 climbed 0.33 per cent to 6,089.60.
The DJ Euro Stoxx 50 index of leading eurozone shares increased by 0.33 per cent to 4,527.79 points.
US stocks advanced Tuesday in pre-holiday trade as Wall Street investors toasted the latest deals including US-based Kraft's offer for Danone's LU biscuits unit and a Canadian mining tie-up.
Late Tuesday, Hilton Hotels Corporation revealed it was to be bought by private equity giant Blackstone Group in an all-cash deal worth US$26 billion (19 billion euros).
"The merger and acquisitions theme is very prominent again following the announced deal in the US overnight," said HSBC equity strategist Robert Parkes Wednesday, in reference to the Hilton buyout.
"That's put the hotel/leisure sector in play."
The news has sparked speculation about similar deals in Europe Wednesday.
In Paris, shares in French hospitality group Accor rocketed 7.20 per cent to 69.57 euros.
InterContinental Hotels Group saw its share price jump 5.21 per cent to 1,323.50 pence in London.
And in Madrid, Spanish peer NH Hoteles saw its stock rally 3.42 per cent to 16.61 euros.
In Frankfurt, Deutsche Telekom shares rose 0.66 per cent to 13.76 euros.
German regional daily Rheinische Post reported Wednesday that T-Mobile, the group's mobile phone arm, had beaten rival Vodafone in the battle to win the marketing rights for Apple's iPhone in Germany.
Across the Atlantic Tuesday, the Dow Jones Industrial Average closed up 0.31 per cent at 13,577.30 points and the Nasdaq composite finished up 0.48 per cent at 2,644.95 just after the closing bell.
The broad-market Standard and Poor's 500 index rose 0.36 per cent to a close of 1,524.87 points.
The US stock market closed early Tuesday ahead of Wednesday's Independence Day, one of America's biggest annual holidays. Trading in US markets will resume Thursday morning.