News Update

VW, RSA shares hammered as Europe turns higher – CNBC

European equities were trading higher Monday despite an uninspiring lead from Asia and Wall Street on the back of the Federal Reserve’s decision to keep interest rates near zero.

The pan-European Stoxx 600 index were trading 0.2 percent higher after a shaky open.

On London’s FTSE index, shares of British insurer RSA were trading 20 percent lower after Zurich Insurance said it was ditching its takeover bid for the company. Zurich shares were down 1.2 percent.

Meanwhile, shares of German-listed carmaker Volkswagen were off 20 percent after news that the company could be fined up to 18 billion euros ($20.3 billion) by U.S. authorities. They allege the company’s software for some diesel models misled buyers about emissions. The company’s Chief Executive, Martin Winterkorn, issued an apology on Sunday and called for an external investigation.

Global markets are still reeling from the Fed’s decision last Thursday not to raise interest rates. The decision prompted fresh concerns about global growth.

Meanwhile in Europe, Alexis Tsipras is once again Greek prime minister after a decisive victory in a snap election in Greece on Sunday. He will return to power in a coalition government with the right-wing Independent Greeks.

Speaking to cheering crowds in a central Athens square, Tspiras promised a period of stability and said he “felt vindicated” after quitting in August to start on a clean slate with voters, Reuters reported. There are hopes his clear win will pave the way for reforms that are a pre-requisite of the country’s third 85 billion euro ($96.2 billion) bailout.

Elsewhere, the continent’s migrant crisis is on the agenda at an emergency summit of European Union leaders on Wednesday in Brussels.

The 28-country bloc has so far failed to find a unified response to the crisis. Southern European countries in particular are struggling to deal with the thousands of migrants making their way north to countries like Austria and Germany.

There are no major European earnings or data releases Monday.

VW, RSA shares hammered as Europe turns higher – CNBC

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