Europe: Shares snap five-day losing streak
EUROPEAN shares climbed on Monday, recouping some of last week's losses as Kering soared after the luxury group announced a CEO change and investors shifted their focus from the conflict in the Middle East that drove a sell-off last week.
The pan-European Stoxx 600 ended 0.36 per cent higher at 546.91, snapping a five-day losing streak. Heavyweight banks were the biggest boost, advancing 1.9 per cent.
Gucci parent Kering jumped 11.8 per cent, among the top percentage gainers on the Stoxx after the luxury conglomerate said it was hiring Renault boss Luca de Meoas to be its new CEO, confirming reports from earlier in the day.
Shares of the French automaker closed 8.7 per cent lower. A separate report said Tokyo's Nissan planned to reduce its stake in Renault.
Ladbrokes owner Entain advanced 15.3 per cent after its US sports-betting joint venture with MGM Resorts - BetMGM - raised its annual revenue and core earnings forecast.
'We still have European equities hovering around highs... the equity market been very positive in its assessment of what's going to happen (tariffs and growth policies) and there a lot of positivity baked into the European stocks at the moment,' said Jacob Pederson, head of equity research at Sydbank.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
The European Commission dismissed on Monday reports suggesting it was willing to accept a broad US tariff of 10 per cent on EU goods as speculative and said they did not reflect current discussions.
On the downside, healthcare stocks lagged as Danish drugmaker Novo Nordisk fell 3.5 per cent.
Geopolitical tensions though, remained a concern as Iran called on US President Donald Trump to force Israel to cease fire as the only way to end the four-day-old aerial war, while Israeli Prime Minister Benjamin Netanyahu said his country was on the 'path to victory' over Iran.
The focus was on a meeting of leaders from the Group of Seven nations that began in the resort area of Kananaskis in the Canadian Rockies on Monday.
Also this week, the market will monitor interest rate decisions in countries including in Japan, Sweden, Switzerland, Norway, England and in the United States.
'We think the inflationary impact from tariffs this summer, and the Fed's preference for greater clarity on the data fallout from tariffs, should keep them on hold (till December),' Goldman Sachs analysts said.
Traders currently see the Fed making the first cut as soon as September, according to the CME FedWatch Tool.
Europe's benchmark index logged a weekly decline on Friday as tensions in the Middle East ramped up and a US trade truce with China offered little clarity on how the longstanding trade differences between them could be solved. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
AsiaOne
an hour ago
- AsiaOne
Iranian state broadcaster hit as Iran urges Trump to make Israel halt war, World News
TEL AVIV/DUBAI — An Israeli strike hit Iran's state broadcaster on Monday (June 16) while the head of the UN nuclear watchdog indicated extensive damage to Iran's biggest uranium enrichment plant and Iran called on the US to force a ceasefire in the aerial war. Late on Monday, Israel said it hit Iran's broadcasting authority, and footage showed a newsreader hurrying from her seat as a blast struck. Israel's military said the building also served as a communications centre used by Iran's armed forces. The conflict entered its fifth day on Tuesday, with air raid sirens sounding in Tel Aviv shortly after midnight as Iran launched additional missiles toward Israel. Iran's Foreign Minister Abbas Araqchi told four European counterparts that Iran was serious about diplomacy but its current focus was on confronting aggression, Iranian state media reported. Israel has said its goal is to eliminate Tehran's ability to develop a nuclear weapon. Iran says more than 224 Iranians have been killed, most of them civilians. Israel says 24 people have been killed, all of them civilians. Sources told Reuters that Tehran had asked Oman, Qatar and Saudi Arabia to press US President Donald Trump to use his influence on Israeli Prime Minister Benjamin Netanyahu to push for an immediate ceasefire. In return, Iran would show flexibility in nuclear negotiations, said the two Iranian and three regional sources. "If President Trump is genuine about diplomacy and interested in stopping this war, next steps are consequential," Araqchi said on X. "Israel must halt its aggression, and absent a total cessation of military aggression against us, our responses will continue. It takes one phone call from Washington to muzzle someone like Netanyahu." Asked if he would agree to talks should Trump want that, Netanyahu told reporters that Israel was committed to removing the threats of both nuclear weapons and ballistic missiles. "If this can be achieved in another way — fine. But we gave it a 60-day chance," Netanyahu said. Speaking to Reuters on Friday, the first day of Israel's assault, Trump said he had given the Iranians 60 days to come to an agreement to halt uranium enrichment and that the time had expired with no deal. Talks between the United States and Iran, hosted by Oman, had been scheduled for Sunday but were scrapped, with Tehran saying it could not negotiate while under attack. Iranian media said Iran was preparing for the "largest and most intense missile attack" yet against Israel, including against military and intelligence targets. Natanz damage Israel launched its air war with a surprise attack that killed nearly the entire top echelon of Iran's military commanders and its leading nuclear scientists. It says it now has control of Iranian airspace and intends to escalate the campaign in coming days. Israel said it hit Iranian F-14 fighter planes at Tehran airport on Monday, and its airstrikes have also put at least two of Iran's three operating uranium enrichment plants out of action. Rafael Grossi, head of the International Atomic Energy Agency, told the BBC on Monday it was very likely all the roughly 15,000 centrifuges operating at Iran's biggest uranium enrichment plant at Natanz were badly damaged or destroyed because of a power cut caused by an Israeli strike. There had been very limited or no damage at the separate Fordow plant, he said. Tehran for the first time in decades of shadow war and proxy conflict fired missiles from Iran that pierced Israeli defences in significant numbers and killed Israelis in their homes. Round-the-clock television images showed Israeli rescuers working in ruins of flattened homes. Almost 3,000 people have been evacuated from their homes since Iranian strikes began, leaving 24 buildings slated for demolition, Israeli Finance Minister Bezalel Smotrich told reporters. Iranian state TV broadcast scenes of collapsed presidential buildings, burned-out cars, and shattered streets in Tehran. Many residents were trying to flee the capital, describing queues for petrol and bank machines that were out of cash. "I am desperate. My two children are scared and cannot sleep at night because of the sound of air defence and attacks, explosions. But we have nowhere to go. We hid under our dining table," Gholamreza Mohammadi, 48, a civil servant, told Reuters by phone from Tehran. Trump has consistently said the Israeli assault could end quickly if Iran agrees to US demands that it accept strict curbs to its nuclear programme. "As I've been saying, I think a deal will be signed, or something will happen, but a deal will be signed, and I think Iran is foolish not to sign," Trump told reporters on the sidelines of the G7 summit in Canada. "I think Iran is basically at the negotiating table," he said without elaborating. On Monday, Iranian lawmakers floated the idea of quitting the nuclear non-proliferation treaty, a move bound to be seen as a setback for any negotiations. Iran has always said its nuclear programme is peaceful, although the IAEA declared last week that Tehran was in violation of its obligations. 'Paying the price' Before dawn on Monday, Iranian missiles struck Tel Aviv and Haifa, killing at least eight people and destroying homes. Iran's Revolutionary Guards said the latest attack employed a new method that caused Israel's multi-layered defence systems to target each other so missiles could get through. Israel's Haifa-based Bazan energy group said its power station had been significantly damaged in an attack that killed three employees and forced its refinery facilities to shut down. Oil prices slipped US$1 (S$1.28) per barrel on Monday in volatile trading after reports that Iran is seeking an end to hostilities, raising the possibility of a truce and easing fears of a disruption to regional crude supplies. The sudden killing of so many Iranian military commanders and the apparent loss of control of airspace could prove to be the biggest test of Iran's system of clerical rule since the 1979 Islamic Revolution. [[nid:719150]]
AsiaOne
an hour ago
- AsiaOne
Israel furious as France shuts weapons stands at Paris Airshow, World News
PARIS/JERUSALEM — France shut down the main Israeli company stands at the Paris Airshow on Monday (June 16) for refusing to remove attack weapons from display, sparking a furious response from Israel and inflaming tensions between the traditional allies. Stands including those of Elbit Systems, Rafael, IAI and Uvision were blocked off with black partitions before the start of the world's biggest aviation trade fair. Smaller Israeli stands, which did not have hardware on display, and an Israeli Ministry of Defence stand, remained open. France, a long-time Israeli ally, has gradually hardened its position on the government of Benjamin Netanyahu over its actions in Gaza and military interventions abroad. French President Emmanuel Macron made a distinction last week between Israel's right to protect itself, which France supports and could take part in, and strikes on Iran it did not recommend. The office of French Prime Minister Francois Bayrou said it had told all exhibitors ahead of the show that offensive weapons would be prohibited from display and that Israel's embassy in Paris had agreed to this. It added that the companies could resume their exhibits if they complied with this requirement. Bayrou told reporters that given France's diplomatic stance, and "in particular its... very great concern about Gaza", the government had felt it unacceptable for attack weapons to be on show. But Israel's defence ministry reacted with fury. "This outrageous and unprecedented decision reeks of policy-driven and commercial considerations," it said in a statement. "The French are hiding behind supposedly political considerations to exclude Israeli offensive weapons from an international exhibition — weapons that compete with French industries." The ministry later added it was filing court petitions against the decision. IAI's president and CEO, Boaz Levy, said the black partitions were reminiscent of "the dark days of when Jews were segmented from European society". "Off guard" Responding to France's timeline on the incident, a source familiar with the Israeli side said the French had agreed to a pre-submitted list of items from the Israelis before the show. Israel's delegation was caught "completely off guard" by guidelines at 6.30pm on the eve of the show, the source added. Two US Republican politicians attending the air show also criticised the French move. Talking to reporters outside the blacked-out Israeli defence stalls, US Republican Governor Sarah Huckabee Sanders described the decision as "pretty absurd", while Republican Senator Katie Britt criticised it as "short-sighted". Meshar Sasson, senior vice president at Elbit Systems, accused France of trying to stymie competition, pointing to a series of contracts that Elbit has won in Europe. "If you cannot beat them in technology, just hide them right? That's what it is because there's no other explanation," he said. Rafael described the French move as "unprecedented, unjustified, and politically motivated". The diplomatic row rocked the opening of the biennial show, already in sombre mood after the crash of a Boeing 787 and fresh conflict in the Middle East, with announcements scaled back. Every two years, Le Bourget airport is transformed into a showcase for the aerospace and defence industries — its sprawling tarmac lined with fighter jets, airliners and drones and its spacious halls hosting high-tech gadgetry and weapons. A person involved in the organising and budgeting of large company displays over many years — not connected to the French or Israelis — told Reuters that a large stand could cost up to US$5 million (S$6 million) including all the cost of freight and staff travel. The air show's organiser said in a statement that it was in talks to try to help "the various parties find a favourable outcome to the situation". Bayrou's office urged Israeli firms to "assume their responsibilities" and follow guidelines if they wanted to reopen their booths. Towards the end of the first day of the June 16 to 20 event, there was no immediate sign of the stands being reopened. [[nid:719114]]
AsiaOne
2 hours ago
- AsiaOne
Trump urges Tehran evacuation as Iran-Israel conflict enters 5th day, World News
TEL AVIV/DUBAI — Israel and Iran attacked each other for a fifth straight day on Tuesday (June 17), and US President Donald Trump urged Iranians to evacuate Tehran, citing what he said was the country's rejection of a deal to curb nuclear weapons development. Trump was due to leave the Group of Seven summit in Canada later on Monday, a day early, due to the Middle East situation, the White House said. Fox News reported he would convene his National Security Council. French President Emmanuel Macron said Trump's early departure was positive, given the immediate objective was to get Israel and Iran to agree to a ceasefire. "Iran should have signed the 'deal' I told them to sign. What a shame, and waste of human life. Simply stated, IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!" Trump wrote on his Truth Social media platform. Iranian media soon reported explosions and heavy air defence fire in Tehran early on Tuesday. Air defences were activated also in Natanz, home to key nuclear installations 320km away, the Asriran news website reported. In Israel, air raid sirens wailed in Tel Aviv after midnight and an explosion was heard as Iranian missiles targeted the country again. Iranian officials reported 224 deaths, mostly civilians, in five days, while Israel said 24 civilians had been killed. Israeli Finance Minister Bezalel Smotrich said nearly 3,000 Israelis had been evacuated due to damage from Iranian strikes. Sources told Reuters that Tehran had asked Oman, Qatar and Saudi Arabia to urge Trump to pressure Israeli Prime Minister Benjamin Netanyahu to agree to an immediate ceasefire. In return, Iran would show flexibility in nuclear negotiations, according to two Iranian and three regional sources. "If President Trump is genuine about diplomacy and interested in stopping this war, next steps are consequential," Iranian Foreign Minister Abbas Araqchi said on X. "Israel must halt its aggression, and absent a total cessation of military aggression against us, our responses will continue." Netanyahu told reporters on Monday that Israel was committed to eliminating threats posed by Iran's nuclear and ballistic missile programmes, adding, "If this can be achieved in another way-fine. But we gave it a 60-day chance." Speaking to Reuters on Friday, the first day of Israel's assault, Trump said he had given the Iranians 60 days to come to an agreement to halt uranium enrichment and that the time had expired with no deal. Oil prices rallied more than two per cent early in Asia on Tuesday after Trump's evacuation warning, reversing losses on Monday amid reports that Iran was seeking an end to hostilities. Chinese urged to leave Israel With security concerns growing and Israeli airspace closed because of the war, the Chinese embassy in Israel urged Chinese citizens to leave the country via land border crossings as soon as possible. The Iran-Israel air war — the biggest battle ever between the two longtime enemies — escalated on Monday with Israel targeting Iran's state broadcaster and uranium enrichment facilities. Rafael Grossi, head of the International Atomic Energy Agency, told the BBC that the Natanz plant sustained extensive damage, likely destroying 15,000 centrifuges, while Iran's Fordow plant remained largely intact. Talks between the United States and Iran, hosted by Oman, had been scheduled for June 15 but were scrapped, with Tehran saying it could not negotiate while under attack. Israel launched its air war with a surprise attack that has killed nearly the entire top echelon of Iran's military commanders and its leading nuclear scientists. It says it now has control of Iranian airspace and intends to escalate the campaign in coming days. Trump has consistently said the Israeli assault could end quickly if Iran agreed to US demands that it accept strict curbs to its nuclear programme. "As I've been saying, I think a deal will be signed, or something will happen, but a deal will be signed, and I think Iran is foolish not to sign," Trump told reporters on the sidelines of the Group of Seven summit in Canada on Monday. A US official said Trump would not sign a draft statement from G7 leaders calling for a de-escalation of the conflict. The draft statement says Iran must never have a nuclear weapon and that Israel has the right to defend itself. [[nid:719128]]
