LONDON: European shares crept up to a record high on Tuesday as a strong outlook from hearing aid maker Demant supported healthcare stocks, although broader gains were stifled by losses in miners and the prospect of major central bank meetings.
The pan-European STOXX 600 index closed 0.1% higher at 479.71 points, with healthcare stocks leading gains with a 1.3% rise. Denmark’s Demant was among the best performers in the sector after it unexpectedly hiked its annual profit outlook.
Mining stocks led losses, down 2.9% on a slump in iron ore and copper prices, as loose supply conditions and a poor demand outlook for China rattled metal markets.
Antofagasta and ArcelorMittal SA were among the worst performers in the sector.
The STOXX 600 had closed at a record high on Monday, carrying over strong gains from October on the back of positive earnings and a jump in bank stocks fuelled by expectations of a rate hike by the European Central Bank next year.
“The environment of higher inflation and higher yields favours certain corporates, but it’s uncertain for others, which leaves you in a very volatile market,” said Bert Colijn, senior economist at ING.
“But the underlying moves are positive, with better-than-expected GDP figures and a quicker-than-expected recovery.”
Comments
Comments are closed for this article.