European shares inches higher, Bayer in a bind

27.05.2021 - Petr Mazaylo
European shares inches higher, Bayer in a bind

Thursday saw European shares inching higher as investors waited patiently for key U.S. labour data. Meanwhile, German shares fell after Bayer shares were hit by a court decision.

On the trading day, the pan-European STOXX 600 index climbed 0.1% to 445.76 points, just beneath what Tuesday’s record high of 447.15.

Among the notable performers, Airbus was seen to be the best as it had risen 6% after setting out sweeping goals that serve to expand production of jetliners as the airline industry is starting to emerge from the coronavirus pandemic.

German shares dropped 0.4% that had lagged other regional markets. The largest entity to be dragged within the DAX was Bayer with a recorded fall of 4%.

Within the past three months, Bayer’s stocks are geared to experience its worst day after a U.S. judge rejected the pharmaceutical maker’s class action plan to settle future claims that are connected to its Roundup and other glyphosate-based weedkillers.

This week had seen little movement with European shares, but had still achieved record highs as continued affirmation of a monetary policy and weakening concerns over inflation started to render a positive picture.

The claims and consumption data have yet to be disclosed from the United States this Friday which investors are waiting for prior to making any significant trading decisions. This is such as these two important metrics are considered by the Federal Reserve in makng adjustments in monetary policy.

Senior market analyst at JFD Group, Charalambos Pissouros, wrote in a statement:

“Market participants stayed relatively indecisive ahead of tomorrow’s release of the core PCE index, which is the Fed’s favourite inflation metric,”

Mining stocks placed 2% more. This sector is seen as the European sector that performs the best with metal prices rising with concerns over supply disruptions in Chile, the leading copper producer.

The stocks of food and beverages were seen as the worst among the lot which saw a fall of 0.6% which came from the foods producer Tate & Lyle. In its annual revenue, a fall of 5% had been recorded.

HSBC also fell by 0.2% after the British bank made a pronouncement that it would be be exiting U.S. retail businesses to render its focus on Asia, currently its largest market.

Shoe manufacturing titan, Puma fell by 2% after Kering, the luxury goods group said it will be selling a 5.9% stake to it via share placement.

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