AMSTERDAM/LONDON: European shares ended higher on Tuesday after data showed economic sentiment improved sharply in June, while Adidas lifted the German index with a share buyback plan. The pan-European STOXX 600 closed 0.3% higher at 456.37 points, after data showed euro zone economic sentiment hit a 21-year high in June as a steady vaccination programme saw several economies reopen.
While the data did not factor in the new Delta variant of the coronavirus, the improving mood saw investors pile into sectors most likely to benefit from a recovery.
Chemical stocks rose 0.9%, while automobile and financial services were among the best performers. German shares were the best performers, adding 0.9%. Adidas rose 2.5% to a record high after the sportswear maker said it will launch a new share buyback programme worth up to 550 million euros ($654 million). Travel-related European stocks fell 0.2% after their worst session in more than a month, following reports of a potential ban on UK travellers in Germany. Spain also tightened travel rules for British tourists.
Among individual stocks, French electrical parts supplier Rexel jumped 4.3% after it lifted its 2021 sales forecast.
Knorr Bremse fell more than 12% to the bottom of the STOXX 600, after Reuters reported the German brakes maker, along with French auto plastic suppliers Plastic Omnium and Faurecia were interested in buying German automotive lighting group Hella. Hella surged nearly 4% on the news.
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