European stocks rose to the highest level in more than two months Wednesday as global markets got a boost from some early steps towards tax reform in the United States and a mega-merger on the Continent revived economic optimism.
The Stoxx Europe 600 benchmark, the broadest measure of regional share prices, was marked 0.23% higher at 384.92 in the opening 90 minutes of trading after topping the 385 mark for the first time since July 21. Early indications from Wall Street suggest the three major indices will also bump higher at the start of trading, with Dow Jones and S&P 500 mini futures indicating 17-point and 4-points gains respectively.
The market's biggest boost came from what is likely to be the region's biggest-ever transportation merger, with shares in Germany's Siemens AG (SIEGY) and France's Alstom SA (ALSMY) surging at the opening bell after agreeing to combine their rail divisions in a €7.4 billion deal designed to see-off competition from China.
The late Tuesday tie-up, which will give German industrial giant Siemens just a shade over 50% control of the combined group, still needs regulatory and shareholder approval, but nonetheless represents a major breakthrough in Franco-German industrial relations just as the two countries are attempting to form a cohesive position on European political leadership.
Siemens shares were marked 1.74% in Frankfurt and changing hands at €118.43 each by 10:30 local time. Alstom shares, meanwhile, surged 5% to €35.25 each. France's CAC-40 added 0.25% in the opening 90 minutes while the DAX performance index in Germany was marked 0.57% higher.
