European Markets Gain Momentum; Deliveroo Surges After DoorDash Takeover Proposal

European markets experienced a positive start to the week, with most sectors trading higher on Monday. The Stoxx 600 index rose by 0.44% by mid-morning, supported by gains in the travel and banking sectors. This followed a strong performance last week, with the index recovering from losses linked to U.S. tariffs. Market participants are eagerly awaiting upcoming earnings and economic data releases from both Europe and the U.S., with key reports on GDP and inflation expected from France and Germany later this week.

In the U.K., the FTSE 100 index saw an increase of 0.4%, positioning it for its eleventh consecutive positive session, the longest winning streak since 2019. Similarly, the FTSE 250 also rose by 0.48%, marking its third consecutive session of gains. Investors are particularly focused on earnings from major companies such as HSBC, BP, and Shell, alongside GDP data, which could influence market sentiment in the coming days.

Shares of Deliveroo saw a significant surge of 17% after the company announced the suspension of its share buyback program in light of a $3.6 billion takeover proposal from U.S. food delivery service DoorDash. This move drove Deliveroo’s stock to its highest level since January 2022. The company confirmed that any potential recommencement of its buyback program would be announced to the market in the future.

Elsewhere, shares in Traton, the truck and bus manufacturer majority-owned by Volkswagen, climbed by 4% despite reporting a decline in sales for the first quarter. The company saw a 10% drop in sales but experienced a 12% increase in incoming orders, suggesting optimism for future growth. Meanwhile, Airbus finalized its acquisition of Spirit AeroSystems’ European operations, which will bolster its production capabilities for key aircraft models such as the A350 and A321.

Source: CNBC