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(qlmbusinessnews.com via uk.reuters.com — Fri, 9 June, 2017) London, UK —
European shares rose in early deals on Friday as investors sought safety in defensive stocks after a shock UK election looked set to throw Britain into fresh political turmoil.
The pan-European STOXX 600 index was up 0.3 percent, while a drop in sterling to a seven-month low helped Britain's internationally-facing FTSE 100 .FTSE index gain 1 percent.
UK Prime Minister Theresa May's Conservative party lost its majority in the House Commons just 10 days before Brexit talks were due to start, with the prospect of a hung parliament sparking fresh concerns around Britain's exit from the European Union.
Defensive sectors – those less dependent on the economic cycle – such as food and beverages .SX3P and health care .SXDP rose 0.8 percent and 0.5 percent respectively, while British utilities such as Centrica (CNA.L) were among top gainers.
Likewise safe-haven precious miners were also in demand, with Fresnillo (FRES.L) up 3.2 percent, while overseas-earners such as Burberry (BRBY.L) and Diageo (DGE.L) also rose.
Italian banks UBI Banca (UBI.MI) and Banco BPM (BAMI.MI) jumped 6.5 percent and 2.5 respectively, leading a rise among European lenders .SX7P.
Stocks linked to the British housebuilding industry were the biggest STOXX fallers, however, with builders merchant Travis Perkins (TPK.L) dropping nearly 4 percent, Howden Joinery (HWDN.L) dropped 3.7 percent and commercial REIT Great Portland Estates (GPOR.L) fell 3.4 percent.
By Kit Rees
