European stocks hit record high as German property deal, tech rally
European stocks posted new record highs on Tuesday as Germany’s biggest property developers merged for a billion-dollar bill and technology shares rallied over brighter investor sentiment after digesting soothing comments on inflation.
The pan-European STOXX 600 index edged up 0.3% to an all-time high of 446.47 points after breaching its early-May peak of 446.19.
Germany’s DAX added 0.8%, also reaching its highest level after a long weekend, bolstered by news that Germany’s biggest property developer Vonovia SE agreed to take over its rival Deutsche Wohnen for about 18 billion euros ($22 billion).
Deutsche Wohnen jumped 15.5%, while Vonovia declined 4.1%. Europe’s wider real estate index gained 1.7% to reach its highest level in more than a year.
Technology stocks edged up 1.2% after their Wall Street peers soared overnight on fresh insistence from U.S. Federal Reserve officials that loose policy would still be in place.
Diminishing inflation fears saw euro zone government bond yields drop for the third day in a row.