Nov 9 (Reuters) – European shares were subdued at the open on Monday as investors weighed the outlook for the global AI trade, while the spotlight was on dealmaking in the banking sector involving Credit Agricole and Banco BPM.
The pan-European STOXX 600 index was flat at 648.88 points by 0810 GMT, with the mining sector leading gains with a 1.4% rise, tracking higher precious metal prices.
Banco BPM jumped 9.4% after Credit Agricole SA said it has proposed that its Italian subsidiary merge with the Italian lender to create a combined entity that would become the country’s third-largest bank. The French bank’s shares dropped 1.4%.
UniCredit gained 3.6% after posting a much larger-than-forecast 24% annual rise in third-quarter earnings and hiked its full-year profit goal, as it prepares to shape strategy at Commerzbank. The German lender was up 2.5%.
Technology stocks such as Aixtron and ASML moved between small gains and losses following sharp declines the week before on concerns about the outlook for the global AI trade.
A report on Nvidia CEO Jensen Huang’s alleged ties to a Chinese businesswoman accused of passing information to Beijing put the CEO’s future of the industry leader under scrutiny. Frankfurt-listed shares of the chipmaker fell 6%.
Hochtief fell 5.3% after majority shareholder ACS said it had not considered launching a takeover bid for the German construction group.
Luxury stocks such as LMVH and Burberry lost over 2% each. Data showed that consumer demand in China, a key importer of European luxury products, was weak in October.
(Reporting by Johann M Cherian in Bengaluru; Editing by Sonia Cheema)
