Investing.com – European stocks traded broadly higher on Monday as investors focused on corporate movements with particular attention on Unilever as Kraft Heinz withdrew a merger offer.
In mid-morning trade in Europe, the benchmark Euro Stoxx 50 gained 0.35%, France’s CAC 40 advanced 0.11%, and Germany’s DAX 30 traded up 0.58%.
Shares in Unilever (AS:UNc) (LON:ULVR) dropped more than 6% on both exchanges, leading the decliners on the Stoxx 600, as Kraft Heinz Co (NASDAQ:KHC) opted not to improve its $143 billion offer to merge with the Anglo-Dutch consumer goods firm. Unilever chief executive Paul Polman had rejected the offer last week due to what he considered a lack of financial or strategic merit.
On the opposite side of the index, German shares of Steinhoff (DE:SNHG) led advancers with gains of nearly 7% as the South African-based international retail holding company called off negotiations with supermarket chain Shoprite (JO:SHPJ) to combine their African assets into would have been the continents largest retailer. Some observers were watching the deal as a potential first stop in Steinhoff making a full takeover offer for Shoprite.
As the second biggest advancer in the European index, Royal Bank of Scotland (LON:RBS) rose more than 5% as it announced that the bank will no longer be required to sell Williams & Glyn as part of its obligations to return funds received in its 2008 bailout.
Shares in Deutsche Telekom (DE:DTEGn) jumped more than 3% as Reuters reported that the Japanese conglomerate Softbank was prepared to give up control of Sprint to T-Mobile in a move that would leave the German telecom as the sole owner of the third largest mobile carrier in the U.S.
In a big move on earnings, Bovis Homes (LON:BVS) sank nearly 10% as the British homebuilder reported a 3% drop in 2016 pre-tax profits and suggested that this will be the year “when we reset the business”.
On a light calendar day, the U.K. saw asking prices annual growth fall from 3.2% to 2.3% in February, its weakest reading since April 2013. Month-on-month, the 2% rise was the slowest rate of growth in the month of February in eight years.
Still ahead, investors will receive a reading on the euro zone consumer confidence for February, while the region’s finance ministers gather in Brussels to discuss the deadlock between Greece and its creditors who remain unable to agree on what measures Athens should take to meet bailout targets.
With U.S. markets closed on Monday for the Washington’s Birthday holiday, market participants will be without economic reports stateside in the second half of the European session.
Meanwhile, oil prices rose on Monday but the gains were limited as investors gauged whether an increase in U.S. drilling rigs and record stockpiles would undermine efforts by producers to cut output and bring the market into balance.
Drillers added six oil rigs in the week to February 17, bringing the total count up to 597, the most rigs since October 2015, energy services firm Baker Hughes reported late Friday.
Energy stocks were trading higher, as French oil and gas major Total SA (PA:TOTF) gained 0.41%, Italy’s ENI (MI:ENI) advanced 0.28%, while Norwegian rival Statoil (OL:STL) rose 0.54%.
Financial stocks were mostly higher, as French lenders BNP Paribas (PA:BNPP) gained 0.36% but Societe Generale (PA:SOGN) lost 0.45%, while Germany’s Deutsche Bank (DE:DBKGn) advanced 0.99% and Commerzbank (DE:CBKG) traded up 0.92%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) advanced 0.37% and Unicredit (MI:CRDI) gained 1.32%, while Spanish banks BBVA (MC:BBVA) traded up 0.79% and Banco Santander (MC:SAN) rose 0.39%
In London, the commodity-heavy FTSE 100 inched up 0.03%.
Shares in Glencore (LON:GLEN) rose 0.88%, Anglo American (LON:AAL) slipped 0.07%, while BHP Billiton (LON:BLT) dropped 0.04% and Rio Tinto (LON:RIO) inched down 0.08%.
Energy stocks traded mixed, as BP (LON:BP) edged forward 0.18% but Royal Dutch Shell (LON:RDSa) dropped 0.13%.
Financial stocks were higher as shares in HSBC Holdings (LON:HSBA) traded up 0.72% and the Royal Bank of Scotland jumped 5.90%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) gained 0.80% and 0.90%, respectively.
Despite the fact that Wall Street will remain closed until Tuesday due to the holiday, U.S. futures registered slight gains. The Dow Jones Industrial Average futures inched up 0.09%, S&P 500 futures edged forward 0.05%, while the Nasdaq 100 futures advanced 0.10%.