European shares surge to two-month highs on M&A activity; traders eye US consumer sentiment data

<p>Fresh signs of increased merger and acquisition activity sent European shares heading back towards two-month highs on Friday, with some traders seeing more gradual gains […]</p>

The video cannot be shown at the moment. Please try again later.

Fresh signs of increased merger and acquisition activity sent European shares heading back towards two-month highs on Friday, with some traders seeing more gradual gains for equities in the near term. The DAX was at 8305 and the CAC at 3986.

UK shares were higher in early trading following a number of well received company results, with the FTSE trading at 6602 +14. Publishing group Pearson rose 4% and gas and oil producer BG Group climbed 1.7% – both reporting better than expected profits. Shares in satellite broadcaster BSkyB fell 2.4% despite reporting a rise in full-year profits.

Last night the Dow Jones closed at 15555, up 13 points, having shrugged off early losses. Facebook surged 30% after a blowout earnings report helped drive gains in the Nasdaq.

We are quiet today in terms of economic data, but at 2.55pm we have the US Revised UoM consumer sentiment forecast at 84.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.