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July 29, 2019, 11:56 a.m. EDT

Europe stocks rise on pound’s collapse, M&A news

Heineken lower after decline in profit

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By Steve Goldstein, MarketWatch


Getty Images
Restaurant food delivery company 'Deliveroo' employee, Billy Shannon (L) picks up food from a restaurant while working in Camden Town, north London in November 17, 2016.

Europe stocks on Monday closed higher, with traders pouring into British equities as the pound collapsed, and merger news also providing a lift.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP -0.40%  rose 0.14% to 391.28.

The U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.33%  gained 1.81% to 7,686.61, its best one-day performance since Feb. 5. Gains accelerated as the pound weakened on concerns the U.K. could leave the European Union without an agreement. Read: British pound collapses on no-deal Brexit concerns

The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.16%  increased 0.08% to 12,430.32 and the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.22%  inched up 0.01% to 5,610.73.

What’s moving markets

News that Prime Minister Boris Johnson did not plan to meet EU leaders unless they are willing to modify the withdrawal agreement seemed to accelerate sterling’s losses, and conversely, helped U.K. equities rise.

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.20%   meanwhile didn’t see much movement, as U.S. markets are largely frozen ahead of Wednesday’s Federal Reserve interest-rate decision.

“The key question facing investors now is whether the Fed can get away with a small number of ‘insurance’ cuts or whether it will be pushed towards a more fundamental loosening of policy,” said Neil Shearing, group chief economist at Capital Economics, which sees 75 basis points of Fed cuts over the next six months.

Focus stocks

Consolidation in the food delivery sector moved stocks as Just Eat /zigman2/quotes/205192708/delayed UK:JE +0.35%   and Takeaway.com /zigman2/quotes/201653805/delayed NL:TKWY +0.24%   announced merger talks, in a deal where the Dutch-listed group would buy the U.K.-listed company in a stock swap valuing Just Eat, using Friday’s closing prices, at 731 pence a share. Activist investor Cat Rock has stakes in both companies and has been reported to be pushing for a deal.

Just Eat jumped 23% to 781 pence while Takeaway.com shares, after early gains, closed lower.

Delivery Hero /zigman2/quotes/202519651/delayed DE:DHER -1.55%  shares rallied over 5% in Frankfurt. Deliveroo, GrubHub’s /zigman2/quotes/210404212/composite GRUB +2.88%  Seamless and Uber /zigman2/quotes/211348248/composite UBER +5.10%   Eats also are competitors in Europe.

The London Stock Exchange Group /zigman2/quotes/206625606/delayed UK:LSE -1.45%  shares jumped 14% as the exchange operator confirmed it’s in talks to buy Refinitiv, owned by Blackstone /zigman2/quotes/203156858/composite BX +0.08%   and Thomson Reuters /zigman2/quotes/203550191/composite TRI +0.25% , in a $27 billion deal to bulk up its offerings of financial data and infrastructure.

Deutsche Boerse /zigman2/quotes/205502669/delayed DE:DB1 -1.30%  shares fell 2.2% in Frankfurt, as the company said it now doesn’t expect its talks to buy certain currency business units from Refinitiv to succeed.

Vodafone Group /zigman2/quotes/202484985/delayed UK:VOD -0.25% /zigman2/quotes/202862751/composite VOD +0.13%   rallied over 4% in London, continuing to gain ground after announcing it may sell its European towers business.

Earnings also were a mover of stocks. Both classes of Heineken shares /zigman2/quotes/205347870/delayed NL:HEIA -0.58%   /zigman2/quotes/209576464/delayed NL:HEIO -0.80%  skidded over 5% as the brewer reported a decline in first-half profit.

Bank of Ireland /zigman2/quotes/204220078/delayed IE:BIRG -4.23% shares dropped 3.5% as the Irish lender said its net interest margin for the year would be lower than it was in the first half, and that margins will trend lower next year. AIB Group /zigman2/quotes/208990455/delayed IE:A5G -2.82%  shares continued to drop after its cautious report on Friday.

/zigman2/quotes/210599654/delayed
XX : STOXX
402.22
-1.60 -0.40%
Volume: 0.00
Nov. 21, 2019 5:50p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,238.55
-23.94 -0.33%
Volume: 0.00
Nov. 21, 2019 4:59p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
13,137.70
-20.44 -0.16%
Volume: 74,515
Nov. 21, 2019 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
5,881.21
-12.82 -0.22%
Volume: 0.00
Nov. 21, 2019 6:05p
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/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,766.29
-54.80 -0.20%
Volume: 232.02M
Nov. 21, 2019 4:58p
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/zigman2/quotes/205192708/delayed
UK : U.K.: London
755.00 p
+2.60 +0.35%
Volume: 1.48M
Nov. 21, 2019 4:35p
P/E Ratio
130.17
Dividend Yield
N/A
Market Cap
£5.12 billion
Rev. per Employee
£161,688
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/zigman2/quotes/201653805/delayed
NL : Netherlands: Euronext Amsterdam
83.45
+0.20 +0.24%
Volume: 246,565
Nov. 22, 2019 3:01a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€5.09 billion
Rev. per Employee
€86,944
loading...
/zigman2/quotes/202519651/delayed
DE : Germany: Frankfurt
44.40
-0.70 -1.55%
Volume: 100.00
Nov. 21, 2019 8:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
N/A
loading...
/zigman2/quotes/210404212/composite
US : U.S.: NYSE
$ 41.74
+1.17 +2.88%
Volume: 4.43M
Nov. 21, 2019 6:30p
P/E Ratio
1,001
Dividend Yield
N/A
Market Cap
$3.71 billion
Rev. per Employee
$370,043
loading...
/zigman2/quotes/211348248/composite
US : U.S.: NYSE
$ 29.46
+1.43 +5.10%
Volume: 55.66M
Nov. 21, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$47.81 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/206625606/delayed
UK : U.K.: London
6,782.00 p
-100.00 -1.45%
Volume: 455,095
Nov. 21, 2019 4:35p
P/E Ratio
49.95
Dividend Yield
0.93%
Market Cap
£24.03 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/203156858/composite
US : U.S.: NYSE
$ 51.66
+0.04 +0.08%
Volume: 3.09M
Nov. 21, 2019 6:30p
P/E Ratio
22.50
Dividend Yield
3.72%
Market Cap
$61.05 billion
Rev. per Employee
$2.41M
loading...
/zigman2/quotes/203550191/composite
US : U.S.: NYSE
$ 71.64
+0.18 +0.25%
Volume: 606,527
Nov. 21, 2019 6:30p
P/E Ratio
151.62
Dividend Yield
2.01%
Market Cap
$35.73 billion
Rev. per Employee
$213,217
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/zigman2/quotes/205502669/delayed
DE : Germany: Frankfurt
136.20
-1.80 -1.30%
Volume: 191.00
Nov. 21, 2019 8:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€555,390
loading...
/zigman2/quotes/202484985/delayed
UK : U.K.: London
152.04 p
-0.38 -0.25%
Volume: 47.67M
Nov. 21, 2019 4:35p
P/E Ratio
N/A
Dividend Yield
4.88%
Market Cap
£40.80 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/202862751/composite
US : U.S.: Nasdaq
$ 19.61
+0.03 +0.13%
Volume: 1.86M
Nov. 21, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
5.05%
Market Cap
$52.41 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/205347870/delayed
NL : Netherlands: Euronext Amsterdam
92.62
-0.54 -0.58%
Volume: 567,434
Nov. 22, 2019 3:00a
P/E Ratio
28.00
Dividend Yield
1.78%
Market Cap
€53.12 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209576464/delayed
NL : Netherlands: Euronext Amsterdam
86.35
-0.70 -0.80%
Volume: 106,840
Nov. 22, 2019 3:01a
P/E Ratio
25.60
Dividend Yield
1.91%
Market Cap
€24.57 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204220078/delayed
IE : Ireland: Dublin
4.12
-0.18 -4.23%
Volume: 2.24M
Nov. 22, 2019 2:00a
P/E Ratio
9.52
Dividend Yield
3.89%
Market Cap
€4.62 billion
Rev. per Employee
€480,949
loading...
/zigman2/quotes/208990455/delayed
IE : Ireland: Dublin
2.69
-0.08 -2.82%
Volume: 2.55M
Nov. 22, 2019 2:00a
P/E Ratio
9.52
Dividend Yield
6.33%
Market Cap
€7.50 billion
Rev. per Employee
€324,484
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Steve Goldstein is MarketWatch markets editor for Europe. Follow him on Twitter: @MKTWgoldstein.

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