MILAN Dec 7 European auto shares surged more
than 3 percent to their highest level since mid-January with
investors lured by their low valuations and a continued rotation
into cyclical stocks.
Traders said the mergers and acquisition activity also
helped after Faurecia started talks to buy the
automotive unit of French drone specialist Parrot.
Europe's auto sector index has fallen 10 percent so
far this year. By 1507 GMT it was up 3 percent to its highest
level since January 13. Faurecia rose 5.2 percent, while shares
in big car makers such as Daimler, BMW and
Volkswagen were all up more than 3 percent.
(Reporting by Danilo Masoni; Editing by Vikram Subhedar)