European shares rallied at the opening on Tuesday as reports of a potential takeover for IWG boosted the market.
The pan-European Stoxx 600 index was up 0.36% in early trade. Germany’s DAX rose 0.53% and the UK’s FTSE 100 gained 0.31% as data showed British house prices jumped by the most in more than 16 years in June.
“Markets remain finely balanced but generally positive ahead of a further raft of factors which are set to dictate the nearer term direction,” said Interactive Investor head of markets Richard Hunter.
“Volatility has dampened, with the approach to both the quarter and half-year end lessening the motivation to take on new positions, and rather to lock in any gains made so far.”
IWG, the world’s largest serviced office group and rival to WeWork, has been in secret talks about a potential takeover offer that could value the company at more than £4bn, Sky News reported citing unnamed sources. Shares in the company were up 8%.
Shares in French electrical parts supplier Rexel shares jumped as the company said it expected same-day sales growth of 12% – 15%, compared with its previous forecast of 5% – 7%.
Housebuilders were in demand after new figures from Nationwide revealed that UK house prices grew at their fastest annual pace for more than 17 years in June, up 13.4%. Taylor Wimpey, Persimmon and Barratt Developments as a result.
