1:00 PM Frankfurt – The European indexes gained after G8 leaders reiterated their support for Greece. Euro area construction output rebounded in March and home prices in the UK rose in April. Ryanair slumped 4% on weak fiscal year outlook. Kabel Deutschland agreed to buyTele Columbus for €603 million.
The European indexes climbed slightly after G8 leaders reaffirmed their support for Greece and urged the nation to stay in the euro zone.
At the weekend meeting of leaders in Maryland urged to Greece stay in the currency union and said the nation must respect its financial commitment to lenders.
German Finance Minister Wolfgang Schaeuble will meet with his French counterpart Pierre Moscovici in Berlin later today.
In Paris trading, the CAC-40 Index gained 16.24 or 0.5% to 3,024.24 and in Frankfurt the DAX Index edged higher 45.19 or 0.7% to 6,316.80.
The yield on Spain’s benchmark 10-year bonds grew three basis points to 6.30%, and the yields on the 10-year Italian bonds were at 5.82%.
Euro Area Output Rebounds
Euro-zone construction output soared 12.4% from a month ago in March compared to the 10.4% slump in February, the latest data from Eurostat showed today.
Annually, construction output decreased 3.8% in March.
In the wider EU27 nations region, output rose 11.8% from a month ago but fell 3.9% annually in March.
French Leading Indicator Climbs
A leading indicator of French economic activity climbed in March.
The Conference Board said that the leading economic index rose 0.4% on a monthly basis in March, following a revised 0.6% increase in February.
UK Home Prices Rise
The average asking price for a home in the United Kingdom rose 2% from a year ago in May, following the 3.4% increase in April property Rightmove said today. The average asking price of property was £243,759.
On a monthly basis, home prices were flat in May following the 2.9% surge in April.
Separately, UK gross mortgage lending declined 19% in April from a month ago to £10.2 billion, the Council of Mortgage Lenders said.
Kabel Deutschland Acquires Tele Columbus
Kabel Deutschland Holding AG, the German cable network operator agreed to acquire Tele Columbus GmbH, the cable provider in Germany for €603 million plus accrued interest.
The company noted that the deal will strengthen the existing broadband infrastructure competition in Germany.