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Latest Share Chat

European shares hover near 3-mo highs, though Ingenico slumps

Tue, 06th Sep 2016 09:08

* STOXX 600 index up 0.1 pct

* Ingenico plummets after results

* Fresenius gains following Spanish acquisition (Recasts, adds quote and detail, updates prices)

By Kit Rees

LONDON, Sept 6 (Reuters) - European shares rose slightly onTuesday, holding near their highest levels since April ascommodities-related stocks rallied, though a slump in France'sIngenico Group led Europe's tech sector lower.

The pan-European STOXX 600 index gained 0.1percent, with the intra-day peaks in April proving to be ahurdle.

"Markets just need a bit more evidence that they shouldindeed be back to the races or ... be selling off and I thinkthe U.S. might give us a bit of a hand today," Mike van Dulken,head of research at Accendo Markets, said. U.S. markets were setto reopen after being shut for a holiday on Monday.

Underscoring investor skittishness and low tolerance forearnings disappointments, French payments firm Ingenico Group plummeted 12.5 percent in heavy volumes, after cuttingits full-year targets in the wake of a "sudden and significantdecline" in U.S. sales.

"Ingenico has adjusted its guidance for H2 2016 due to therapid and temporary market decline in the U.S. caused by thechange in EMV rules, and persistently difficult conditions inBrazil," Richard-Maxime Beaudoux, analyst at Bryan, Garnier &Co, said in a note.

Dutch fertilizer group OCI also dropped, down 7.2percent after reporting its first half results.

Among the risers, a 3.8 percent rally in German medicalcompany Fresenius SE helped offset losses, gainingafter it said that it was buying Spain's biggest privatehospital chain, Quironsalud, for 5.76 billion euros ($6.42billion).

The rally in crude oil prices continued to underpin sharesof major producers such as Total and Royal Dutch Shell, while Europe's Basic Resources sector was thetop sectoral riser on the back of a rally in mining shares. (Reporting by Kit Rees; Editing by Vikram Subhedar and AndrewHeavens)

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