Live Markets: European stock futures edge lower; M&A in focus

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26/02/2024 07:41

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    EUROPEAN STOCK FUTURES EDGE LOWER; M&A IN FOCUS
    European shares were set for a softer start on Monday, with U.S. PCE inflation data on
Thursday likely to be this week's top market mover, as investors stay focused on the outlook for
interest rate cuts by the Federal Reserve.
    EuroSTOXX 50  STXEc1  and FTSE  FFIc1  futures both fell around 0.2%, following a
record-high close for the broader European market on Friday. 
    U.S. contracts also eased from peak levels, having enjoyed a strong week driven by strong
earnings and blockbuster numbers from AI favourite Nvidia.
    Early corporate news in Europe showed some deal-making was coming to fruition.
    French construction materials company Saint-Gobain  SGOB.PA  signed a definitive agreement
to buy Australian rival CSR  CSR.AX  for an enterprise value of $2.95 billion.
    French investor Xavier Niel and his Iliad telecoms group agreed to buy a 19.8% stake in
Swedish telecoms operator Tele2  TEL2b.ST  for $1.26 billion.
    Keeping with M&A, SGL Carbon  SGCG.DE  said it was evaluating the divestment of its carbon
fiber unit, sending its shares up 4% pre-market.
    Over in the UK, Bunzl  BNZL.L  bought catering equipment Nisbets for $430 million, although
it said its operating margin this year would be slightly below 2023 levels.
    British homebuilders were also on the watchlist. The antitrust regulator started an
investigation into eight homebuilders after it found evidence that indicated potential sharing
of commercially-sensitive information among competitors.
    In Sweden, struggling real estate group SBB  SBBb.ST  agreed to enter into a joint venture
with U.S.-based Castlelake in a deal that will help the Swedish company pay off its debt.
    Finally, Swiss software firm Temenos  TEMN.S  formed a "special committee" to oversee the
examination of allegations recently raised in a report by Hindenburg Research that wiped out
nearly one-third of its stock market value. 
    
    (Danilo Masoni)
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