Europe markets open to close: Rate cuts, inflation, stocks

Anglo American is likely to create “a lot of additional value” from its restructuring, said John Meyer, partner at SP Angel.

Meyer noted that higher copper prices are on the way and that the rise in prices is why BHP Group is keen to buy Anglo American.

The British miner is “cheap” and that’s why BHP Group wants to buy the rival firm, he said.

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— April Roach

Consumer confidence in Germany and Italy ticked higher in May, while French sentiment was flat and Portugal’s declined, a range of surveys showed.

Market research firm GfK said German households’ assessment of the economic outlook increased significantly and the overall consumer climate improved for a fourth straight reading, though people were only slightly less willing to spend.

France’s national statistics agency Insee found household confidence was “stable,” as Italy’s Istat said its consumer confidence index rose “thanks to a rise in all its components,” particularly economic confidence.

Portuguese households were also more optimistic on the economy in May, but overall consumer confidence fell after hitting the highest level since February 2022 in April, Statistics Portugal said.

— Jenni Reid

Shares of Anglo American were down 0.84% at 10:59 a.m. in London, trimming earlier losses after the British miner rejected a request from BHP Group to extend takeover talks.

The rival miners have until 5 p.m. London time Wednesday to reach a decision on BHP’s latest offer for Anglo, following a week-long extension of last week’s deadline.

BHP had requested a further prolongment of talks earlier on Wednesday, saying it “believes a further extension of the Deadline is required to allow for further engagement on its proposal.” 

Anglo said BHP’s latest offer for its business failed to address the board’s “fundamental concerns relating to the disproportionate execution risk” surrounding the deal, and that an extension beyond Wednesday’s deadline would not be granted.

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— Karen Gilchrist, Jenni Reid

Swedish aerospace and defense firm Saab was 5.6% lower in mid-morning deals, after Sweden’s defense minister said the country was pausing plans to send Saab-made Gripen fighter jets to Ukraine.

Ukraine’s military backers want instead to focus on introducing U.S.-made F-16 aircraft, Pal Jonson told news agency TT.

European stocks opened lower on Wednesday, with the Stoxx 600 index 0.2% lower at 8:22 a.m. in London.

France’s CAC 40 index fell 0.35%, Germany’s DAX dipped 0.2%, and the U.K.’s FTSE 100 was just below the flatline.

BHP Group on Wednesday said it believes an extension to talks with takeover target Anglo American is necessary, as the deadline for discussions looms later in the session.

The Australian miner said in a statement that it had proposed a number of “socioeconomic measures” to address concerns over its bid, but added that more time was needed to discussions.

The offer values the company at £38.6 billion ($49.2 billion), according to previous Reuters calculations.

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— Karen Gilchrist

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