The European stock market made tentative gains Monday as news surfaced that Unilever reached an agreement to purchase Alberto Culver for $3.7 billion. Unilever, the Anglo-Dutch consumer products mega-corporation has had Alberto Culver, makers of the V05 hair-care product range, in their sights for some time. The acquisition will make Unilever the largest single maker of hair-care products in the world.
Unilever increased its percentage by 2.5 points by the sale, helping to push European stocks slightly upwards in what otherwise has been shaky trading. The benchmark Stoxx Europe 600 Index rose a little less than 0.1 percent, which takes its total rise this quarter to 8.5 percent. This comes as speculators expect the economy to grow, despite European governments slashing spending to try and control budget deficits, as well as China trying to slow down growth and rumors Japan is planning a $50 billion stimulus package.
Despite the small gains, home values in the UK dropped and Swiss medical giant Actelion’s share prices fell sharply after news that its latest trials for a drug to help patients of bleeding to the brain fell short of the intended outcome.
The biggest rally on the Stoxx 600 index was from Micro Focus International Plc who gained 5.2 percent. This is largely due to the “buy” coverage given to the company in Barclay’s latest list.
While Europe makes slight gains, uncertainty abounds as fears of a second US recession rear their head. Austerity measures are set to put a dampener on economic growth which will most likely signal a weak recovery of US markets, but may be an indicator of a second recession.
