The latest recovery attempt on the European stock exchanges proved temporary on Tuesday. However, the most important indices were able to curb their losses by noon. The focus of investors was on the possible first-time test of an intercontinental rocket by North Korea. The trading volume was thin because Wall Street remained closed due to the US Independence Day.
“The market reaction to geopolitical tensions may be elevated slightly with the U.S. on public holiday for Independence Day today, however, once the moves begin to settle, the market is likely to view the rebounds on the safe haven plays such as gold and the yen as another chance to sell,” said Richard Perry, market analyst at Hantec Markets, in a note.
Lastly, the EuroStoxx 50 ( EURO STOXX 50 ) was still 0.10 percent in the minus at 3488.15 points. As a result, the Eurozone lead index once again returned to its previous losses following the upbeat start of the week. The French CAC-40 ( CAC 40 ) index ( CAC 40 ), which fell by 0.09 per cent to 5190.88 points, was similar. The British FTSE 100 fell by 0.09 percent to 7370.13 points.
At Clariant, shareholders could look forward to a price jump of 3.44 percent. The chemical company is apparently coming back from the investor side with the planned takeover of the US competitor Huntsman. Hedge fund Corvex Management, which is regarded as active, had secured more than three percent of the Clariant shares and wanted to prevent the Huntsman takeover of 6.4 billion dollars, according to Bloomberg news agency, citing people familiar with the matter.
As the best value in the FTSE 100, WorldPay’s share price rose by almost 22 percent. The company confirmed that its competitor Vantiv and the bank JPMorgan ( JPMorgan ChaseCo ) had signaled their interest in a possible complete takeover of the company. Sainsbury ( J Sainsbury ), the supermarket chain, climbed higher after news that its first-quarter same-store sales rose 2.3% and its cost-cutting plan is on track.
On the other hand, the shares of EDF (Electricite de France) ) fell by almost 4 per cent in Paris. The controversial construction of two new nuclear reactors in Hinkley Point in the UK is expected to become much more expensive than planned for the French electricity company. The British investment bank HSBC downgraded the stock and now recommends sale.
