German Market Up, Dialog Semiconductor Climbs

(RTTNews) - The German market is trading above the flat line on Thursday, following firm cues from Asia and Wall Street overnight, amid hectic activity on the M&A front.

A report released by the Commerce Department showed Wednesday that economic activity in the U.S. decreased by much more than previously estimated in the first quarter.

Investors placed hopes on a rebound in the second quarter, while the data also gave rise to optimism that the Fed will not be prompted to take tough measures sooner.

Meanwhile, French consumer confidence improved in June as general economic expectations and personal financial situation outlook strengthened from the prior month, survey data from the statistical office Insee showed.

Consumer sentiment rose slightly to 86 in June, when it was forecast to remain unchanged at 85.

The Euro Stoxx 50 index of eurozone bluechip stocks is losing 0.02 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 0.12 percent.

The DAX index is currently gaining 0.07 percent.

Dialog Semiconductor is gaining 5 percent. The company is in preliminary talks with AMS AG about a possible merger of equals. AMS is gaining 4 percent in Zurich.

Fresenius Medical Care is gaining 3.1 percent and Lufthansa is up 1.8 percent.

K+S is losing 2.1 percent. Adidas and Henkel are falling 1.7 percent and 1.4 percent, respectively.

Other major markets in the region are mostly higher.

The Asian stocks rose broadly, as investors shrugged off weak U.S. GDP data, betting that the Federal Reserve will keep interest rates lower for longer than initially thought.

In the U.S., futures point to a cautious open on Wall Street. In the previous session, stocks rose for the first time in three days as pharmaceutical stocks rallied and broadcasters got a lift from a Supreme Court ruling. The Dow rose 0.3 percent and the tech-heavy Nasdaq gained 0.7 percent, while the S&P 500 added half a percent.