Bargain hunters once again snapped up semiconductor stocks. Infineon was among the strongest performers on the Dax, gaining 4.5 percent. The chipmaker's shares continued their recovery after investors on Wall Street and in Asia also returned to the sector following the recent sell-off. Shares in ASML, STMicro, and ASM International also rose by around two percent each. 'Sentiment in the technology sector is nervous but remains optimistic,' said Andreas Lipkow, analyst at broker CMC Markets.
INTESA FORGES ALLIANCE FOR TAKEOVER
In the bidding war for the traditional Italian bank Monte dei Paschi di Siena (MPS), major bank Intesa Sanpaolo expressed confidence in the success of its 30 billion euro offer. Intesa CEO Carlo Messina is relying on good relations with key MPS major shareholders and aims to resolve potential antitrust concerns. Intesa had submitted an unsolicited takeover bid for MPS on Monday, preempting a merger proposal from rival Banco BPM. All three Italian banks saw their shares rise by three percent.
The prospect of playing a key role in the takeover battle boosted shares of insurer Unipol. The stock rose by up to six percent to its highest level since November 2008. To clear antitrust hurdles from the outset, Intesa has reached a separate agreement with Unipol. Under the deal, 635 MPS branches and the brand are to be sold to Unipol. These are then to be merged with BPER bank, in which Unipol holds a significant stake. 'When a bank with the strength, history, and tradition of Intesa Sanpaolo enters the arena, it is not to play a friendly match, but with the determination to win,' Unipol CEO Carlo Cimbri said on Monday.
GIVAUDAN AND SYMRISE FIND FAVOR
Following positive analyst assessments, rivals Givaudan and Symrise were also in demand. Swiss flavors and fragrances manufacturer Givaudan climbed as much as 6.6 percent, putting it on track for its largest daily gain in over two years. Deutsche Bank analysts upgraded the stock to 'Buy' from 'Hold'. JPMorgan placed the shares on 'Positive Catalyst Watch' after recently upgrading them to 'Overweight'. In its wake, smaller competitor Symrise also gained up to six percent, making it the top performer on the Dax.
Positive signals also emerged from the economic front. The German economy started the spring quarter better than expected. Despite the pressures of the Iran war, both exports and production rose in April. Exports grew by 0.9 percent over the previous month to 136.6 billion euros due to higher demand from Europe and the USA. Chinese exports also rose surprisingly sharply in May, driven by strong demand for semiconductors and artificial intelligence (AI) hardware, as well as front-loaded orders from abroad. The People's Republic's exports rose by 19.4 percent in May, while imports climbed by 27.4 percent.
(Report by Stefanie Geiger, edited by Olaf Brenner. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets))
