By Johann M Cherian, Tharuniyaa Lakshmi and Niket Nishant <\/p>\n
July 6 (Reuters) – Europe’s benchmark STOXX 600 index pulled back after hitting a record high on Monday as investors cashed in on gains following a strong \u200crun, while a $7.34 billion take-private offer boosted shares of easyJet. <\/p>\n
The pan-European index slipped 0.35% to 650.5 points at \u200cthe close. It had hit an all-time peak of 654.44 points earlier in the session, after posting its strongest weekly performance since mid-May last week. <\/p>\n
With \u200bdeclines of 1.81% and 1.80%, utilities and healthcare stocks were the biggest drags on the index. Food and beverage shares also fell 1.67%. <\/p>\n
Germany’s DAX index bucked the broader regional weakness, however, and inched up 0.15% to a record high, notching up its fifth straight session of gains. <\/p>\n
Industrial orders in the euro zone’s largest economy rose more than expected in May. <\/p>\n
“Investors have largely ignored German \u200cequities in Q2. We expect the tide \u2060to turn,” Deutsche Bank analysts, led by head of European equity and cross asset strategy Maximilian Uleer, wrote in a note. <\/p>\n
“German mid-caps, especially those exposed to growing infrastructure spend, will be among \u2060the biggest winners in markets.” <\/p>\n
Investors are also looking ahead to the earnings season, which could be pivotal for equities and provide fresh momentum if results prove stronger than expected. <\/p>\n
“The upcoming earnings season should be a test for the AI theme and likely shape the \u200bmarket \u200bperformance over the coming months,” said Mohit Kumar, an economist at \u200bJefferies. <\/p>\n
“There have been concerns about excess capacity and whether \u200cAI capex can deliver the expected returns. We are optimistic on the earning season. Capex remains strong and as long as money continues to flow, AI-related sectors should remain well-supported.” <\/p>\n
Data released on Monday showed euro zone retail sales in May rose 1.6% year-over-year, in line with estimates. <\/p>\n
Top stock movers in the region included easyJet, which jumped 9.28% after the British budget airline agreed in principle to a sweetened takeover offer from U.S. investment firm Castlelake, valuing the carrier at up to \u00a35.5 \u200cbillion ($7.34 billion). <\/p>\n
Defence stocks were among the top sectoral gainers, up 1.33%, as \u200bthe Ukraine war showed no signs of easing. Investors bought defence shares \u200bon expectations that simmering geopolitical tensions would aid the \u200bsector. <\/p>\n
Exail rose 2.12% after Thales reached an agreement to buy the Gorg\u00e9 family’s controlling stake \u200cin the drone technology company. <\/p>\n
Airbus gained 1.58%. Industry sources \u200bsaid the planemaker has set \u200ban internal goal of 900 deliveries this year after handing over more than 89 jets in June, while keeping its official full-year guidance of 870 deliveries unchanged. <\/p>\n","protected":false},"excerpt":{"rendered":"By Johann M Cherian, Tharuniyaa Lakshmi and Niket Nishant July 6 (Reuters) – Europe’s benchmark STOXX 600 index…\n","protected":false},"author":2,"featured_media":87934,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[21411,10269,15,46518],"class_list":["post-87933","post","type-post","status-publish","format-standard","has-post-thumbnail","category-europe","tag-earnings-season","tag-easyjet","tag-european","tag-expected-returns"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/87933","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/comments?post=87933"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/87933\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media\/87934"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media?parent=87933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/categories?post=87933"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/tags?post=87933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}