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European market mixed as Trump concerns ease Clariant jumps on $14 billion merger

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As the President, Donald Trump’s first overseas visit going on Markets in Europe were drifting around the flatline. On Monday investors consume multi-billion dollar merger in the chemicals industry. Clariant jumps on $ 14 billion mergers.

The pan-European Stoxx 600 ^ STOXX eked out some gains in mid-afternoon trade, up 0.05 percent, boosted by a positive open Wall street. Sectors were pointing in different directions.

On Monday, Chinese steel futures came close to a 6 percent jump. Telecoms were leading the gains in mid-afternoon deals, up more than 1 percent. This followed reports that Softbank and Saudi Arabia’s main sovereign wealth fund raised $ 93 billion. To invest in technology, including artificial intelligence and robotics.

 

In chemicals, Clariant (Swiss Exchange: CLN-CH) shot up over 6 percent after the Swiss group announced an all-stock deal to merge with the U.S. based Huntsman Corporation. Creating a chemicals giant worth over $ 14 billion. While Clariant was one of the best-performing stocks on the STOXX 600, up almost 6 percent, chemicals remained under pressure as a sector.

Lafargeholcim (Swiss Exchange: LHN-CH) the manufacturing company has appointed a new Cheif Executive Officer Jan Jenisch which sent the company’s shares to the top of Europe’s benchmarks, up over 6.5 percent.
After agreeing to sell some U.S. businesses to boost its balance sheet, Insurer Aegon also jumped more than 6 percent.

In contrast, shares of the biopharma firm UCB (Euronext Brussels: UCB-BE) tumbled over 17 percent. This follows news that a new osteoporosis drug trial had a higher rate of serious heart-related side-effects.

Trump, NATO, Europe

After spending the weekend in Saudi Arabia, President Donald Trump is to visit Jerusalem on Monday where he is expected to meet Israeli and Palestinian leaders.

Trump will then go on to meet NATO members in Brussels later this week. According to the Wall Street Journal, the heads of state will back Trump’s call for higher spending on defense. They are set to agree to present detailed plans of how they will achieve the 2 percent of gross domestic product contribution to the alliance.