Most European stock indices advanced Monday. The prospect of some M&A activity and the continued easing of political tensions in Italy and Spain put investors in an upbeat mood Monday. The FTSE was up 0.5 percent, the CAC edged up 0.1 percent, the DAX added 0.4 percent and the SMI was 0.2 percent higher.
Accor sank after confirming that it had an interest in buying a minority stake in Air France-KLM. Air France-KLM advanced. DS Smith rallied after it announced the proposed acquisition of Papeles y Cartones de Europa, known as Europac, a Western European integrated packaging business. Lender CYBG gained after it launched a revised offer to buy challenger bank Virgin Money.
Richemont advanced in Zurich. The luxury goods group said that it has completed the sale of its wholly-owned subsidiary, Lancel, a French luxury leather goods company, to Piquadro, an Italian leather goods group. Novartis was unchanged after announcing positive results from the third Phase III trial of Kisqali. UniCredit declined in Milan — according to the Financial Times, the bank is considering a merger with France's Société Générale. In Zurich, bank stocks including Julius Baer, UBS and Crédit Suisse all advanced.
Eurozone investor sentiment deteriorated sharply in June largely reflecting political uncertainties in Italy according to survey data from Sentix. The investor confidence index slid to 9.3 in June from 19.2 in May — the lowest score since October 2016. Eurozone April producer prices climbed 2 percent on the year after increasing 2.1 percent in March. UK construction PMI reading was unchanged at 52.5 in May.