European shares edge higher, focus on EU recovery plan

Reuters May 27 | Updated on May 27, 2020

File Photo   -  Bloomberg

European shares inched higher on Wednesday as investors focused on a fresh stimulus plan for the European Union, while renewed US-China tensions over Hong Kong tempered optimism about a global economic recovery.

The pan-European STOXX 600 rose 0.4 per cent in early deals, led by banks, travel and leisure stocks, and automakers.

The eurozone stock index also gained 0.4 per cent, with the European Commission set to unveil a plan to help the EU economy recover from its coronavirus slump with a mix of grants, loans and guarantees exceeding 1 trillion euros.

Asian markets, however, struggled after fresh protests in Hong Kong over new national security laws proposed by Beijing, while US President Donald Trump warned of a strong response to China's move by the end of this week.

Finnish tyre maker Nokian Tyres Plc jumped 17 per cent to the top of the STOXX 600 after it named a new chief executive officer.

Chipmaker Infineon Technologies AG dipped 2 per cent after it raised about 1.06 billion euros ($1.16 billion) by issuing new shares to partially finance its $10-billion acquisition of US-based Cypress Semiconductor.

Published on May 27, 2020

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