The European markets ended Monday’s session with modest gains. Bank stocks lead the way higher at the start of the new trading week, after Italy moved to shore up confidence in its fragile banking system.
The Italian government agreed to bail out two banks in the Venice region, Veneto Banca and Banca Popolare di Vicenza , at a cost of 5.2bn euros after the European Central Bank ruled that those banks were “failing or about to fail.”
However, the markets pared their gains in the afternoon. Early gains in energy stocks were reduced after crude oil prices reversed. The early struggles on Wall Street also had a negative impact on investor sentiment.
The pan-European Stoxx Europe 600 index advanced 0.40 percent. The Euro Stoxx 50 index of eurozone bluechip stocks increased 0.51 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.62 percent.
The DAX of Germany climbed 0.29 percent and the CAC 40 of France rose 0.56 percent. The FTSE 100 of the U.K. gained 0.31 percent and the SMI of Switzerland finished higher by 0.98 percent.
In Frankfurt, insurer Allianz rose 0.55 percent after selling its 90 percent stake in regional bank Oldenburgische Landesbank to U.S. private equity firm Apollo.
Automaker Volkswagen gained 0.26 percent after its Slovak unit reached an agreement with a trade union on salary rise.
Nordex climbed 3.45 percent after receiving an order for ten N131/3900 turbines from Turkey.
In London, outsourcing firm Capita advanced 2.17 percent after selling its fund administration business to Link Group for £888m.
Vodafone slid 0.18 percent. Its New Zealand unit and Sky Network TV have decided to terminate an agreement relating to their proposed merger.
Mining giant BHP Billiton dipped 0.13 percent after approving US$184 million in initial funding for the South Flank sustaining mine project in the central Pilbara, Western Australia.
Nestle surged 4.32 percent after activist investor Daniel Loeb’s Third Point LLC hedge fund took a…