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European shares gain as prospect of ECB boost helps carmakers

Published 01/12/2015, 04:30 am
Updated 01/12/2015, 04:40 am
© Reuters.  European shares gain as prospect of ECB boost helps carmakers
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(Updates with closing prices)

* FTSEurofirst 300 closes up 0.4 pct, Euro STOXX up 0.5 pct

* Carmakers among stocks benefiting from weaker euro

* Kleinwort Benson soars on counter-bid

* Delta Lloyd falls after announcing rights issue

By Danilo Masoni

MILAN, Nov 30 (Reuters) - European shares rose on Monday, boosted by expectations of more help from the European Central Bank, which weakened the euro and helped carmakers.

The ECB is expected to cut interest rates on euro deposits and extend its quantitative easing programme when it meets on Thursday. That put pressure on the euro, lifting shares of carmakers and luxury goods companies, since the weaker euro made their products cheaper overseas. FRX/

"There is still some optimism ahead of the ECB meeting on Thursday, which is the key market driver of the week," said Carlo Alberto De Casa, analyst at ActivTrades in London.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.4 percent, close to three-months highs reached last week. The euro zone's blue-chip Euro STOXX 50 index .STOXX50E also advanced 0.5 percent.

German carmaker Volkswagen VOWG_p.DE got a further boost when Germany's transport minister voiced approval of VW's plans to resolve issues related to its cheating on emissions tests. VW shares ended up 6.2 percent. ID:nL8N13P2Y2

Belgium financial services group Kleinwort Benson BHFKB.BR also soared 13.1 percent after French private bank Oddo launched a counter-bid for the company, challenging a lower offer from Chinese investor Fosun 0656.HK .

However, BHP Billiton (L:BLT) fell 1.3 percent after Brazil announced plans to sue the owners of the Samarco iron ore miner - BHP and Vale VALE5.SA - for $5.2 billion in damages after a dam owned by Samarco burst, killing at least 13 people and spilling tons of waste. urn:newsml:reuters.com:*:nL1N13O0M9

Delta Lloyd DLL.AS also fell 10 percent. The Dutch insurer announced a 1 billion-euro rights issue to boost its capital ratio and said it would pay no final dividend this year. urn:newsml:reuters.com:*:nL8N13P0M9

The FTSEurofirst is up by around 10 percent so far in 2015.

Today's European research round-up RCH/EUROPE

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