Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Investors Claim Victory On Amlin Takeover

By CMC Markets (Jasper Lawler)Stock MarketsSep 08, 2015 12:10
Investors Claim Victory On Amlin Takeover
By CMC Markets (Jasper Lawler)   |  Sep 08, 2015 12:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
  • Europe rallies on China stability, German trade
  • FTSE above 6100 as financials, utilities rally
  • Amlin (LONDON:AML) bought by Japanese insurer Sumitomo Mitsui Financial (TOKYO:8316)
  • US stocks bounce back after holiday

UK and European shares rallied on the open for the second day this week.

A late ramp on the Shanghai Composite despite disappointing trade data helped ease concerns of an immediate return to plunging stock markets on China’s return from its national holiday. There’s some relief that yesterday there were some more sensible investor-friendly regulations tabled by Chinese authorities; namely the removal of tax on dividends and introduction of a circuit breaker for the Shanghai Composite stock exchange.

German exports and imports improved in August. It’s comforting to see the devaluation of emerging market currencies; particularly the Chinese yuan is not yet having a material effect on demand for European goods.

Eurozone GDP growth for the second quarter was revised higher to 0.4% from 0.3%.

The FTSE 100 held up above the September lows on Monday, setting the groundwork for another push through 6,100 on Tuesday. Financials and utilities were the best performing sectors in early Tuesday trading. A 6% leap in the shares of Germany’s Commerzbank (XETRA:CBKG) after a broker upgrade boosted banking shares across Europe. A broker upgrade to United Utilities saw shares trade higher with the likes of Centrica (LONDON:CNA) and Severn Trent (LONDON:SVT) moving up in kind.

UK Insurer Amlin was bought by Japanese rival Mitsui Sumitomo sending shares higher by over 30%. The deal was for £3.47bn, a hefty 36% premium over Amlin’s share price on September 7. The size of the premium possibly reflects a sum needed to overturn the Amlin management’s previously stated disinterest in a deal. With the Nikkei at multi-year highs, Japanese companies have been on the lookout for opportunities to use inflated market caps to fund expansion away from the sluggish domestic economy.

USA pre-opening levels

  • S&P 500: 34 points higher at 1,955
  • Dow Jones: 275 points higher at 16,377
  • Nasdaq 100: 82 points higher at 4,266

DISCLAIMER: CMC Markets is an execution only provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed.

No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

Original Post

Investors Claim Victory On Amlin Takeover

Related Articles

Investors Claim Victory On Amlin Takeover

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The inherent concept of such investments means that they are not suitable for the investor seeking income from such investments, and are only suitable for those who have the required experience and understand the market risks. You should carefully consider your investment objectives, level of experience, and seek advice from an independent financial advisor if you have any doubts.
Continue with Google
Sign up with Email