Fiat leads European share rebound after dismal trading last week

Article by Anita Panait, on May 28, 2013

Italian carmaker Fiat was among the European companies which shares made a big rebound on Monday, May 27, 2013. The rebound of European shares comes after they declined sharply last week.  The euro zone's blue-chip Euro STOXX 50 index jumped 0.9 percent to 2,789.65 points while the pan-European FTSEurofirst 300 index surged 0.4 percent to 1,231.89 points.

Fiat, on the other hand, rose over 4 percent on reports that it was getting closer to raising the needed funds to buy out its American subsidiary Chrysler. Despite the gains, volumes are expected to be thin as the United States and the United Kingdom markets were closed to public holidays. Just last week, Euro zone blue-chip stocks had their first weekly loss in a month amidst concerns over a possible reduction of US monetary stimulus measures that were instrumental in driving a global equity market rally this year.

Some traders, however, refused to lose hope from the fact that the Euro STOXX 50 still managed to end the week off its lowest point – at 2,754 points area, which was the index's peak in late January 2013 and has been viewed as a major support level. Since the start of the year, the FTSEurofirst 300 has soared 9 percent, the Euro STOXX 50 has jumped 6 percent, and Germany's DAX posted a record high of 8,557.86 points.

Hendrik Klein, who heads trading firm Da Vinci Invest, told Reuters that he thinks that the medium-term trend is still bullish. Fiat led the FTSEurofirst 300 with a 4.1 percent gain, which traders credited to a report by Wall Street Journal saying that the Italian carmaker was holding discussions over potential financing for the buyout of the remaining stake in Chrysler that Fiat does not own. [source: Reuters]

Topics: fiat, europe

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