PARIS - Renault's decision to buy a large stake in Nissan is paying off in the financial markets.
The company's share price plunged after it acquired 38 percent of Nissan in March. But it has risen sharply in recent months.
At the same time markets have been generally disappointed by the half year results of major carmakers like DaimlerChrysler, Volkswagen and Fiat.
Renault's stock hit euro 50 on August 25, up 30 percent from euro 38 last December 30. The price dropped to euro 32 after the Nissan announcement in March.
Paris and London analysts expect good first-half financial results, which will be announced on September 2.
Renault sales in Europe rose 12.2 percent to 1,039,000 units from January through July.
Investors also like Renault's strategy.
'The deal with Nissan brings a dynamic element,' said Patrice Solaro of Julius Baer France bank in Paris.
'The Nissan stock price is appreciating. The market is finding out that the deal will work. A drastic re-engineering of Nissan is now in sight.'