European bourses climb on elections relief

European stocks edged up on Monday as investors were broadly relieved by initial results from parliamentary elections that suggested pro-eu parties had held their ground.

While early results from the weekend’s European elections indicated some gains for far-right and nationalist parties, these were a far cry from the surge some had feared.

By mid-afternoon in London, Europe’s Stoxx 600 was up 0.2 per cent; Germany’s Xetra Dax 30 rose 0.5 per cent; in France the Cac 40 climbed 0.3 per cent; while Italy’s FTSE Mib gained 0.3 per cent and Spain’s Ibex 35 advanced 0.6 per cent.

Trading in the euro against the dollar was little changed, while the pound traded down 0.3 per cent against the dollar amid persisting Brexit uncertainty, with Nigel Farage’s Brexit Party performing well in the elections.

In Greece, prime minister Alexis Tsipras’s decision to call a snap

general election prompted bond prices to rally on hopes of a more market-friendly government.

Auto stocks across Europe posted strong gains after Fiat Chrysler confirmed it had proposed a €33bn all-share merger with Renault, in a deal slated to transform the global car industry. Renault and FCA were the top performers on the Stoxx 600, rising 16 and 12 per cent respectively. The index tracking Europe’s automotive industry was up 2.2 per cent, meanwhile, as Volkswagen, Daimler and BMW all posted gains.

Trading in Asian shares was mixed on Monday, as investors waited for any new developments in the trade war between the United States and China.

Japan’s Topix gained 0.4 per cent. China’s CSI 300, an index of major shares listed in Shanghai and Shenzhen, was up 1.2 per cent, while Hong Kong’s Hang Seng slipped 0.2 per cent.

Brent crude, the international oil marker, was up 0.4 per cent at $68.96 per barrel, having pared gains of about 0.7 per cent earlier in the session.