European Shares Gain As UK Brings Forward Fiscal Plans


European stocks rose on Monday as investors awaited clarity on U.K.’s fiscal plan.

British new finance minister Jeremy Hunt will lay out details of some of the government’s tax plans later today.

The announcement comes two weeks early after a series of abrupt U-turns by the government on its mini budget failed to calm worries about its economic credibility.

The pan European Stoxx 600 limbed 0.6 percent to 393.75 after gaining 0.6 percent on Friday.

The German DAX and France’s CAC 40 both rose about 0.6 percent, while the U.K.’s FTSE 100 was adding half a percent.

Eurozone government bond yields dropped, taking cues from British gilts, after the Bank of England outlined the various liquidity operations it holds following last week’s conclusion of emergency market support.

Credit Suisse gained 1 percent after the Swiss bank reached a final settlement with the New Jersey Attorney General related to its Residential Mortgage-Backed Securities business with transactions dating back to before 2008.

Oil & gas firm BP Plc rose 0.7 percent in London and Shell added half a percent as oil prices rose about 1 percent on a softer dollar and amid hopes of better fuel demand from China.

Investment platform Hargreaves Lansdown, which is facing a £100 million ($113 million) lawsuit from thousands of investors, plunged 7.7 percent.

Broadcaster ITV surged 8.3 percent, buoyed by a Financial Times report that the company is reviewing the future of its production arm ITV Studios.

ASOS plummeted 12 percent. The online fashion retailer confirmed reports suggesting that it is in negotiations with its lenders over changing the terms of its 350 million pound ($394 million) borrowing facility.

Drägerwerk shares tumbled 3.5 percent. The German company reported that its preliminary net sales for the third quarter declined 9.1 percent, net of currency effects, to around 725 million euros from the prior year’s 769.6 million euros.

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