Europe open: Shares continue rally as investors eye PMIs
By Frank Prenesti
Date: Wednesday 23 Sep 2020
(Sharecast News) - European stocks continued their recovery on Wednesday after sharp sell-offs on earlier in the week, as investors eyed eurozone PMIs and despite a small tightening of restrictions in the UK and concerns other European countries will follow suit.
The pan-European STOXX 600 rose 0.9%, with all major European bourses higher. London's FTSE 100 gained more than 1.2% on the back of a weaker pound - most of the index's constituents are exporters who benefit from lower sterling. Germany's DAX and France's CAC 40 were both more than 1.25% % higher.
In corporate news, Diploma topped the leaders board with the shares up more than 20% after the company said it was buying Windy City Wire Cable and Technology Products for £357m to extend its presence in the US and also resuming dividend payments.
The company said it would fund the deal through a placement of up to 10% of its share capital and new debt facilities. Diploma, which had suspended its interim dividend in May, recommended a payment of 30p a share.
Shares in Upper Crust and Ritazza café owner SSP Group were also among the leaders despite the travel food outlet company warning of big job cuts and an 86% plunge in second half sales.
3i shares were up on news that its Action discount retail business beat expectations in the past three months as the private equity investor reported mixed trading at its other portfolio businesses.
Puma and Adidas shares soared after US sportswear maker Nike reported strong earnings and forecast better-than-expected sales for 2020.
Shares in Austrian sensor maker ams also powered ahead after the company said it had signed a so-called domination and profit and loss transfer agreement as a key step towards closing out its €4.6bn takeover of German firm Osram, whose shares were 13% higher.
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