PARIS May 27 European shares ended higher on
Monday, rebounding after a sharp two-session drop, with Fiat
surging on speculation the Italian carmaker could soon
launch a buyout offer for U.S. unit Chrysler.
Trading volumes were thin, however, as both the UK and U.S.
markets remained closed for a public holiday.
The Euro STOXX 50 index provisionally ended 1
percent higher, at 2,793.11 points, after suffering a 2.5
percent drop in two days. Volumes on the euro zone's blue-chip
index represented only about 35 percent of its daily average
volume of the past three months.
"We shouldn't read too much into today's rise, and I think
the pull-back started last week is not over yet," Saxo Banque
senior sales trader Alexandre Baradez said.
"However, the medium-term trend is still positive for
European stocks, with no big negative catalyst ahead, and with
very low bond yields driving more and more investors into
Euro zone banks featured among the biggest gainers,
bouncing back after a 5.6 percent slide last week. BNP Paribas
gained 1.9 percent and Banco Santander added
Fiat gained 4.4 percent, boosted by a press report saying
the Italian carmaker is in talks with banks to secure financing
for a buyout of U.S. unit Chrysler.
Club Med jumped 23 percent after the French
holiday resort operator's top shareholders, AXA Private Equity
and Chinese investor Fosun International,
unveiled a buyout offer for the firm alongside the company's