LONDON — European stocks inched higher on Tuesday, with investors in the region focusing on further political turmoil in France after the ousting of Prime Minister Francois Bayrou on Monday.
The pan-European Stoxx 600 was 0.1% higher 10 minutes into the session, with France’s CAC 40 index adding 0.2%.
‘Merger of equals’
In equity markets, London-listed mining giant Anglo American jumped 5.8% after it was announced the firm had agreed to merge with Canada’s Teck Resources to create one of the world’s top five copper producers.
Frankfurt-listed shares of Teck Resources were last seen trading 21.7% higher.
The new company, which will be called Anglo Teck, will be headquartered in Canada and is expected to be listed on exchanges in New York, Toronto, London, and Johannesburg.
Under the deal terms, Anglo American shareholders will own roughly 62.4% of the combined entity, with Teck shareholders holding the remaining 37.6%.
“Anglo American and Teck believe that the formation of Anglo Teck in a merger of equals will provide exceptional and enduring benefits for Canada, including establishing a global critical minerals champion headquartered in Canada, bringing strengthened Canadian leadership in critical minerals on the world stage,” the companies said in a joint statement.
Traders will be keeping a close eye on France this week after Bayrou and his centrist minority government lost a confidence vote on Monday.
The French prime minister was widely expected to lose the motion after failing to win support from political rivals on both the right and left for 2026 budget plans aimed at reducing the country’s yawning budget deficit.
Losing the confidence vote means French President Emmanuel Macron will now have to appoint France’s fifth prime minister in less than two years. Macron is seen as likely to choose another centrist ally to lead a minority government.
Asia-Pacific markets traded mostly higher Tuesday while U.S. stock futures were little changed overnight after the Nasdaq Composite hit a new record on Monday.
Investors stateside are keeping a close eye on inflation reports this week: the U.S. producer price index report for August is due on Wednesday morning, followed by the consumer price index on Thursday.
The inflation prints will be coming in after weaker-than-expected hiring data on Friday, which helped fuel investor hope that the U.S. Federal Reserve is likely to lower benchmark interest rates at its policy meeting next week.
