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June 26, 2017, 12:12 p.m. EDT

European stocks finish higher, helped by Italian banks, Nestlé

Oil rally boosts sentiment, too

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By Sara Sjolin and Victor Reklaitis, MarketWatch


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Shares of Nestlé, maker of Butterfinger and Baby Ruth candy bars, are rising after Third Point took a stake.

European stocks finished with gains on Monday, helped by Italian banks after that country’s government stepped in to shut down two failed lenders, and as Nestlé SA rallied after a hedge fund snapped up a big stake in the consumer-products giant.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +1.65%  climbed 0.4% to end at 389.05.

“Italy has just shown the age of bailouts is not over. That significantly reduces the risk of an investment in a bank going sour,” said Jasper Lawler, senior market analyst at London Capital Group, in a note.

Last week, stocks across Europe were put under pressure by a renewed selloff in oil prices, with crude slumping to a 10-month low on Wednesday. However, oil prices rose on Monday, giving a boost to energy giants. West Texas Intermediate crude was recently 0.4% higher, while Brent gained 0.1%.

Royal Dutch Shell PLC /zigman2/quotes/204253697/delayed UK:RDSB +7.75%   /zigman2/quotes/207682964/lastsale RDS.B +4.05% and Repsol SA /zigman2/quotes/202941606/delayed ES:REP +9.75%   /zigman2/quotes/201138486/delayed XE:REP +9.54%  both put on 0.3%. But Total SA /zigman2/quotes/206172043/delayed FR:FP +5.42% /zigman2/quotes/201824152/lastsale TOT +1.25%  finished flat after earlier gains faded.

Italian bank rescue : The Italian government on Sunday reached a deal to close two struggling lenders—Veneto Banca and Banca Popolare di Vicenza—after the European Central Bank on Friday evening declared that the pair was set to fail. The bill to assume responsibility for liquidating the banks’ bad loans and other items could cost the government as much as 17 billion euros ($19 billion).

The “good” assets of the banks will be transferred to Intesa Sanpaolo SA /zigman2/quotes/206161760/delayed IT:ISP +1.20% for the token price of €1. Intesa will be given €5.2 billion to cover expenses related to the transaction, including money to cover job cuts. Meanwhile, officials said a rescue deal had been completed for another Italian bank, Monte dei Paschi di Siena /zigman2/quotes/202470451/delayed IT:BMPS +2.81% . That lender would be able to tap state aid to say in business, a Reuters report said .

Shares of Intesa closed 3.5% higher on Monday after the news. Among other Italian banks, shares of Unione di Banche Italiane SpA /zigman2/quotes/200732627/delayed IT:UBI +0.92%  added 2% and UniCredit SpA /zigman2/quotes/200769686/delayed IT:UCG -1.75%  picked up 2.2%.

Italy’s FTSE MIB index  rallied 0.8% to end at 21,001.95.

Other movers: Shares of Nestlé SA /zigman2/quotes/208115528/delayed CH:NESN -0.35%  jumped 4.3%, nabbing an all-time closing high. The rally came after news that billionaire activist investor Daniel Loeb’s Third Point LLC hedge fund has taken a $3.5 billion stake in the Swiss consumer-products stalwart.

Individual indexes: Germany’s DAX 30 index /zigman2/quotes/210597999/delayed DX:DAX +1.22%  climbed 0.3% to finish at 12,770.83, while France’s CAC 40 index /zigman2/quotes/210597958/delayed FR:PX1 +0.40%  gained 0.6% to 5,295.75.

The U.K.’s FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX +1.95%  moved 0.3% higher to end at 7,446.80, boosted by the benchmark’s banks and oil companies.

The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.1994%  changed hands at $1.1197, little changed compared with $1.1193 late Friday in New York.

Economic news and politics: German business sentiment hit a record in June, with the Ifo business climate index unexpectedly rising to 115.1 points from 114.6 points in May.

In the U.K., the Democratic Unionist Party was said to have made a deal with the Conservative Party to support Prime Minister Theresa May’s minority government.

Read: Brexit one year later: 5 ways the U.K. could now leave the EU

/zigman2/quotes/210599654/delayed
XX : STOXX
320.06
+5.18 +1.65%
Volume: 0.00
March 31, 2020 5:50p
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/zigman2/quotes/204253697/delayed
UK : U.K.: London
1,359.80 p
+97.80 +7.75%
Volume: 22.40M
March 31, 2020 4:35p
P/E Ratio
8.87
Dividend Yield
11.19%
Market Cap
£98.38 billion
Rev. per Employee
N/A
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/zigman2/quotes/207682964/lastsale
US : U.S.: NYSE
$ 32.66
+1.27 +4.05%
Volume: 11.62M
March 31, 2020 6:30p
P/E Ratio
8.37
Dividend Yield
11.51%
Market Cap
$58.20 billion
Rev. per Employee
$4.75M
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/zigman2/quotes/202941606/delayed
ES : Spain: Madrid
8.33
+0.74 +9.75%
Volume: 14.99M
March 31, 2020 5:38p
P/E Ratio
N/A
Dividend Yield
9.47%
Market Cap
€11.28 billion
Rev. per Employee
€2.06M
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/zigman2/quotes/201138486/delayed
XE : Germany: Xetra
8.22
+0.72 +9.54%
Volume: 27,603
March 31, 2020 6:30p
P/E Ratio
N/A
Dividend Yield
9.59%
Market Cap
€11.15 billion
Rev. per Employee
€2.06M
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/zigman2/quotes/206172043/delayed
FR : France: Euronext Paris
35.39
+1.82 +5.42%
Volume: 15.72M
March 31, 2020 5:38p
P/E Ratio
9.31
Dividend Yield
7.57%
Market Cap
€86.83 billion
Rev. per Employee
€1.59M
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/zigman2/quotes/201824152/lastsale
US : U.S.: NYSE
$ 37.24
+0.46 +1.25%
Volume: 5.09M
March 31, 2020 6:30p
P/E Ratio
8.75
Dividend Yield
N/A
Market Cap
$95.13 billion
Rev. per Employee
$1.87M
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/zigman2/quotes/206161760/delayed
IT : Italy: Milan
1.49
+0.02 +1.20%
Volume: 218.40M
March 31, 2020 5:35p
P/E Ratio
6.23
Dividend Yield
7.79%
Market Cap
€25.71 billion
Rev. per Employee
€400,827
loading...
/zigman2/quotes/202470451/delayed
IT : Italy: Milan
1.13
+0.03 +2.81%
Volume: 2.50M
March 31, 2020 5:35p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
€1.22 billion
Rev. per Employee
€207,356
loading...
/zigman2/quotes/200732627/delayed
IT : Italy: Milan
2.41
+0.02 +0.92%
Volume: 8.30M
March 31, 2020 5:35p
P/E Ratio
10.92
Dividend Yield
5.40%
Market Cap
€2.71 billion
Rev. per Employee
€232,018
loading...
/zigman2/quotes/200769686/delayed
IT : Italy: Milan
7.15
-0.13 -1.75%
Volume: 37.47M
March 31, 2020 5:35p
P/E Ratio
4.92
Dividend Yield
8.81%
Market Cap
€16.27 billion
Rev. per Employee
€80,793
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/zigman2/quotes/208115528/delayed
CH : Switzerland: SWX
CHF 99.45
-0.35 -0.35%
Volume: 10.51M
March 31, 2020 5:30p
P/E Ratio
23.14
Dividend Yield
2.71%
Market Cap
CHF287.43 billion
Rev. per Employee
CHF296,880
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
9,935.84
+119.87 +1.22%
Volume: 151,505
March 31, 2020 6:30p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
4,396.12
+17.61 +0.40%
Volume: 151,397
March 31, 2020 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
5,671.96
+108.22 +1.95%
Volume: 1.58M
March 31, 2020 4:56p
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1012
-0.0022 -0.1994%
Volume: 0.0000
March 31, 2020 10:35p
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Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin. Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

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