European shares rise on positive aspects in utilities, tech; Remy Cointreau hits new excessive

  • Remy Cointreau breaks above 200 euros
  • Healthcare, utilities also gain ground
  • Trading volumes thinned by U.S. holiday

Nov 25 (Reuters) – European shares rose on Thursday as French spirits maker Remy Cointreau surged after strong earnings outlook, while investors bought into defensive sectors amid worries about soaring coronavirus cases across the continent.

The Europe-wide STOXX 600 index (.STOXX) rose 0.4%, bouncing off three-week lows hit on Wednesday. Utilities (.SX6P) and healthcare stocks (.SXDP), sectors considered as safer bets during times of economic uncertainty, were among top gainers.

Technology stocks (.SX8P) rose 0.8%, their first session of gains in six days, after rising bond yields hit the high-growth sector earlier this week.

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After concerns about faster U.S. rate hikes dented global sentiment for most part of the week, strong U.S. economic data helped Wall Street close higher on Wednesday and supported markets across the globe.

U.S. market holiday for Thanksgiving Day is expected to keep trading activity subdued on Thursday.

“It is striking to see the resilience of stocks in the face of rising yields and a Fed intent on sending the message of a faster taper,” analysts at RBC said in a note.

However, they noted the uptick in the volatility index shows “investors are nervously buying protection against market turbulence.”

Coronavirus infections broke records in parts of Europe on Wednesday, with the continent once again at the epicentre of a pandemic that has prompted new curbs on movement. read more

Italy tightened the screws on people unwilling to take an anti-COVID vaccine, while France is set to announce new COVID-19 containment measures. read more

Data earlier showed a weaker-than-expected German economic expansion in the third quarter and tepid consumer sentiment ahead of Christmas shopping season. read more

Although regional indexes including Germany’s DAX (.GDAXI), Italy’s FTSE MIB (.FTMIB) and France’s CAC 40 (.FCHI) rose about 0.3% each, joining broad market gains.

Remy Cointreau (RCOP.PA) jumped 10.2% to a record high after it raised full-year profit outlook as strong demand for its premium cognac drove a stronger-than-expected operating profit in the first half. read more

Rival Pernod Ricard (PERP.PA) gained 1.9%, while London-listed Diageo (DGE.L) climbed 0.9%.

Radiation therapy equipment maker Elekta (EKTAb.ST) gained 6.4% after it reported a smaller-than-expected fall in August-October earnings amid a growing need for cancer care and radiotherapy.

Swiss Life (SLHN.S) gained 3.6% after it said it would launch a new 1 billion Swiss francs ($1.07 billion) buyback and raise its dividend payout ratio. read more

Norway’s Adevinta (ADEA.OL), the world’s largest classified ads company, fell 2.2% after it posted a smaller-than-expected rise in its third-quarter revenue. read more

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Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.

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