European shares lift after merger talks between Renault and Fiat

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The pan-European Stoxx 600 rose 0.23% on Tuesday morning, with all major European indices in the black

This combination of pictures created on May 27, 2019 shows a photo of the logo of French carmaker Renault on March 2, 2011 and a handout picture released on January 29, 2014 by Fiat Press Office of the logo of Italian auto maker FCA. Picture: FABRICE COFFRINI / AFP

Markets were also buoyed by provisional results from the EU elections that showed liberals and Greens matching a surge by eurosceptic parties, which took a quarter of seats but failed to dramatically alter the balance of power in parliament. Investors had been worried about eurosceptic parties gaining a 30% share of seats — the level at which they could seriously disrupt European governance and the region's ability to show unity in addressing key concerns like a global trade war.

A stronger voice for the liberals and Greens could see the next EU executive seeking a tougher line on regulating polluting industries, taxing multinational companies or demanding trading partners help contain climate change."In the simple world of forex, a possible crisis is averted, leaving us with familiar issues. Europe needs more growth and while EU leaders argue over who gets which top jobs, it needs easier fiscal policy perhaps most of all," Juckes said.Greek stocks jumped 6.

The spread between the German 10-year bond yield , considered one of the world's safest assets, and the Italian 10-year government bond yield was little changed after initially narrowing. Escalating trade tension between the US and China have rattled investors in recent weeks, pressuring stocks lower just as concerns build about weakening momentum in the world's largest economies.

 

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