Markets

European shares pull back from three-month highs after rally

The pan-European Stoxx 600 declined 0.8 per cent earlier, led lower by personal and household goods

Mon Jun 8 2020 - 09:28

European shares retreated from three-month highs on Monday, as investors locked in some profits following a strong rally last week on hopes of a post-coronavirus recovery.

The pan-European Stoxx 600 declined 0.8 per cent earlier, led lower by personal and household goods, healthcare and retail sectors. The pull back came after U.S. tech-heavy Nasdaq breached its intraday record high on Friday and the STOXX 600 closed 14 per cent below its all-time high as improving economic data and fresh stimulus measures lent weight to hopes that the worst is behind. AstraZeneca slipped 1.8 per cent after Bloomberg reported it had approached US rival Gilead Sciences about a possible merger to form one the world's largest drug companies.

German card payments company Wirecard dropped 4.1 per cent after prosecutors opened proceedings against its entire management board as part of a market manipulation probe.

Oil majors Royal Dutch Shell, BP and Total rose between 0.5 per cent and 3 per cent as crude prices climbed after major producers agreed to extend a deal on record output cuts.

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China stocks ended higher on Monday as poor domestic trade data reinforced hopes for further policy stimulus to shore up the coronavirus-stricken economy. At the close, the Shanghai Composite index was up 0.24 per cent at 2,937.77. - Reuters

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