* STOXX 600 up 0.1 pct
* Wirecard, Bouygues rise after results
* Bayer falls after notes placement
* Relfationary trade loses steam, defensives up (Recasts, adds detail and quotes, updates prices)
By Kit Rees
LONDON, Nov 16 (Reuters) - European shares edged higher Wednesday, supported by a rally in commodities-related stocks along with gains among Germany's Wirecard and France's Bouygues after reporting results.
The STOXX 600 .STOXX index climbed 0.1 percent, on track for its third straight session of gains.
Among the top risers, German payment processor Wirecard WDIG.DE rose 5.3 percent after issuing guidance for 2017, while France's Bouygues BOUY.PA also rose 4 percent after maintaining its outlook following a forecast-beating rise in third quarter operating profit. European Value Retail's BMEB.L shares also rose 4.7 percent after a broker upgrade. believe B&M's 33% share price fall since peak provides a buying opportunity. We think B&M is well positioned for a tough UK consumer environment," analysts at Jefferies said in a note, upgrading their rating on the stock to "buy".
The drugmaker fell after a placement of 4 billion euros of mandatory convertible notes. the biggest fallers, shares in Ocado OCDO.L dropped more than 6 percent with analysts citing pressure from grocer Morrison's MRW.L extension of its Amazon AMZN.O deal to offer a new same-day grocery delivery service to Amazon Prime customers. Boss' BOSSn.DE shares also declined, dropping 5.7 percent after its new CEO said that the fashion house should return to growth in 2018, with plans to simplify the brand portfolio. the basic resources index .SXPP and oil stocks .SXEP gained, investors favoured more defensive sectors, such as telecoms .SXKP and utilities .SX6P , gaining 0.8 percent and 0.3 percent respectively as the reflationary trade continued to lose steam.
Since Donald Trump won the U.S. presidential election, investors had been betting on potential beneficiaries from his plans to boost spending on infrastructure and deregulate the banking sector.
These hopes have boosted shares in miners, construction companies and banking stocks. Analysts, however, cited the upcoming Italian referendum and elections in Europe next year as reasons to be cautious.
"I think markets are perhaps already ... moving on to the other political risk we're facing," Mike van Dulken, head of research at Accendo Markets, said.
"You can't really take on any more risk on the hope that a populist vote will still lead to policy that will deliver growth, which would be good, because we don't know if we're there yet."
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.