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European Markets Jump On French Election Results

The European markets ended Monday's session solidly in the green. The decisive victory for Macron's party in the French election triggered a sharp jump in the markets at the open. The markets took out the session highs in late trade, thanks to the positive opening on Wall Street.

French President Emmanuel Macron's party won a clear parliamentary majority in Sunday's election, giving him a strong mandate in parliament to pursue his pro-European Union, business-friendly reform plans.

Brexit negotiations with the EU also began today, after Britain bowed to pressure for a formal opening to their long-awaited negotiations rather than first holding technical talks between civil servants.

The European Central Bank on Monday published the details of its emergency lifeline for banks in a bid to increase transparency regarding the rules and procedures of the facility.

The bank released the text of its Emergency Liquidity Assistance, or ELA, agreement on its website as decided during the Governing Council meeting on May 17.

Under the ELA, solvent financial institutions or a group of them with temporary liquidity problems are extended central bank money, where in either case, such operation is not part of the single monetary policy, the ECB said.

The pan-European Stoxx Europe 600 index advanced 0.87 percent. The Euro Stoxx 50 index of eurozone blue chip stocks increased 1.01 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.96 percent.

The DAX of Germany climbed 1.07 percent and the CAC 40 of France rose 0.90 percent. The FTSE 100 of the U.K. gained 0.81 percent and the SMI of Switzerland finished higher by 0.75 percent.

In Paris, Ipsen rose 1.87 percent after receiving FDA approval for Dysport injection used for the treatment of lower limb spasticity in adults.

Aerospace giant Airbus climbed 1.96 percent after unveiling an upgraded version of the world's biggest passenger jet.

In London, Rolls-Royce advanced 1.87 percent. The engine maker said last week that it had started 2017 well, with all businesses performing in line with expectations.

Ocado soared 11.09 percent on speculation that it could become an acquisition target for Amazon. Marks & Spencer Group rose 1.56 percent and J Sainsbury rallied 2.26 percent.

Aberdeen Asset Management increased 5.01 percent after shareholders approved its merger with Standard Life. Shares of Standard Life added 2.39 percent.

Cairn Energy tumbled 5.01 percent after the Indian Income Tax Department ordered coercive action against the company to recover Rs 10,247 crore of retrospective tax.

Novartis rose 1.41 percent in Zurich. The drug-maker has received European approval for a blood cancer treatment known as Rixathon.

Credit Suisse gained 3.42 percent after Deutsche Bank upgraded its rating on the stock to "Buy."

Royal Philips jumped 6.45 percent in Amsterdam on reports that the hedge fund Third Point has been buying shares of the company.

Eurozone construction output recovered in April after declining in March, data from Eurostat showed Monday. Construction output rose 0.3 percent month-on-month in April, reversing a 1.1 percent fall in March.

The job vacancy rate in the euro area increased in the first quarter, figures from Eurostat showed Monday. The job vacancy rate rose to 1.9 percent in the first quarter from 1.7 percent in the previous period.

British households' finance outlook worsened further in June and their financial pressures remained sharp on higher living costs, results of a survey by IHS Markit and financial information provider Ipsos Mori revealed Monday. The seasonally adjusted Household Finance Index, or HFI, rose to 43.8 in June from 42.6 in May.

The average asking price for a house in the United Kingdom was down 0.4 percent on month in June, property tracking website Rightmove said on Monday, coming in at 316,109 pounds. That follows the 1.2 percent increase in May.

by RTTNews Staff Writer

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