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London - European shares rose on Monday, led by Aggreko after a bullish trading update, although concern the US Federal Reserve will start scaling back its stimulus at this week's policy meeting could crimp market gains.
British temporary power provider Aggreko advanced 5.5% after saying full-year results were likely to be slightly ahead of expectations, driven by increased underlying revenue across its global power business.
It said strong cash generation and lower capital expenditure were expected to reduce net debt by £200m compared to the previous year.
Broker WH Ireland upgraded its full-year 2013 pretax profit forecast by 2.5% to £335m in response, highlighting that the debt reduction will create "further options for the business in the coming year".Deutsche Telekom was another good gainer, ahead 3.6%, boosted by a report in The Wall Street Journal that Sprint Corp was mulling a takeover of T-Mobile, which is majority owned by Deutsche Telekom.
Budget deal
"We have long argued that Sprint and (T-Mobile) would be better off together, with potential long term synergies of up to $30bn, notwithstanding the monumentally complex nature of the network merger," analysts at Bernstein Research wrote.
A trader said that although such a deal may not easily win antitrust approval, it was still proving positive for Deutsche Telekom's shares.
The FTSEurofirst 300 was up 0.3% at 1 246.11 points early on Monday, while the euro zone's blue chip STOXX 50 rose 0.5% to 2 937.71 points.
Recent robust US data along with last week's breakthrough budget deal in Washington fuelled speculation that the Fed will announce a reduction to its $85bn of monthly bond purchases on Wednesday.
That has prompted investors to book profits on risky assets, which have strongly benefited from the central bank's massive liquidity injection.
British temporary power provider Aggreko advanced 5.5% after saying full-year results were likely to be slightly ahead of expectations, driven by increased underlying revenue across its global power business.
It said strong cash generation and lower capital expenditure were expected to reduce net debt by £200m compared to the previous year.
Broker WH Ireland upgraded its full-year 2013 pretax profit forecast by 2.5% to £335m in response, highlighting that the debt reduction will create "further options for the business in the coming year".Deutsche Telekom was another good gainer, ahead 3.6%, boosted by a report in The Wall Street Journal that Sprint Corp was mulling a takeover of T-Mobile, which is majority owned by Deutsche Telekom.
Budget deal
"We have long argued that Sprint and (T-Mobile) would be better off together, with potential long term synergies of up to $30bn, notwithstanding the monumentally complex nature of the network merger," analysts at Bernstein Research wrote.
A trader said that although such a deal may not easily win antitrust approval, it was still proving positive for Deutsche Telekom's shares.
The FTSEurofirst 300 was up 0.3% at 1 246.11 points early on Monday, while the euro zone's blue chip STOXX 50 rose 0.5% to 2 937.71 points.
Recent robust US data along with last week's breakthrough budget deal in Washington fuelled speculation that the Fed will announce a reduction to its $85bn of monthly bond purchases on Wednesday.
That has prompted investors to book profits on risky assets, which have strongly benefited from the central bank's massive liquidity injection.
