Europe midday: Shares rally after weak start; Novo Nordisk rebounds
By Frank Prenesti
Date: Monday 23 Dec 2024
(Sharecast News) - European shares rallied late morning at the start of a shortened trading week ahead of Christmas, while traders digested news that Japanese auto giants Honda and Nissan had agreed to start talks on a merger.
The pan-European Stoxx 600 index was down 0.19% at 503.14 points.
Asian markets were higher after a cooler-than-expected inflation reading from the US on Friday, while Wall Street future indicated a higher open.
In economic news, the UK economy failed to achieve any growth in the quarter to September, according to revised figures from the Office for National Statistics. The figure was revised down from growth of 0.1%.
In equity news, Honda and Nissan signed a memorandum of understanding to commence talks on deepening a partnership that started earlier this year. Over the next six months, the duo will discuss combining their operations under a holding company, with a plan to complete the merger in August 2026.
Aviva said it had struck a deal to buy insurance rival Direct Line for £3.75bn, sending shares in the latter higher in early trade.
The offer values each Direct Line Share at 275p a premium of 73.3% to the closing Price of 158.7p on November 27. Aviva plans to achieve annual pre-tax cost savings of at least £125m through job cuts "economies of scale and increased efficiency".
Novo Nordisk stock rebounded strongly after the drugmaker's disappointing results for experimental obesity drug CagriSema wiped out as much as $125bn off its market value on Friday.
Reporting by Frank Prenesti for Sharecast.com
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