Publications
Partners
London - European shares rebounded from a one-week low on Wednesday, with the construction and materials sector leading the market higher after Holcim and Lafarge agreed with CRH on their divestment plans.
The STOXX Europe 600 Construction and Materials index rose 0.6% after cement firms Holcim and Lafarge said they had reached a binding agreement under which Irish firm CRH will buy some assets for €6.5bn.
Shares in Holcim, Lafarge and CRH rose 1.3% to 1.5%, helping the FTSEurofirst 300 index of top European shares to gain 0.3% to 1 607.39 points by 10:12, after falling to a one-week low on Tuesday.
The market was also supported by a survey showing morale among German consumers improved heading into June, helped by a growing willingness to make purchases.
"The German consumer confidence survey came in higher than expected which should bode well for domestic consumption in the months ahead," Markus Huber, senior analyst at Peregrine & Black, said. "There is very little major data scheduled to be released today, keeping the focus ever more on Greece."
Greece and its European creditors sought to play down fears that Athens would default on a payment to the International Monetary Fund next week. Senior members of Prime Minister Alexis Tsipras's government have said openly that Greece does not have the money to pay €300m to the IMF on June 5.
Greek shares were up 0.8%.
Among other sharp movers, Italy's biggest insurer Generali rose 1.2% after the company said it would pay cumulative dividends of more than €5bn to the end of 2018, as it focuses on increasing cash generation and building a solid capital base.
Shares in Novozymes, the world's largest maker of industrial enzymes, also rose 2.2% after UBS raised its stance on the stock to "buy" from "sell".
Energy shares were also in demand, with the STOXX Europe 600 Oil and gas index rising 0.4%, as oil prices rebounded on expectations that US crude stocks could fall for a fourth straight week.
