European shares up for third straight session as Wire Card, Bouygues gain

  • Reuters
  • Stock Market News
European shares up for third straight session as Wire Card, Bouygues gain
Credit: © Reuters.

* 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".

A 5 percent fall in Bayer BAYGn.DE , however, weighed on the chemicals sector .SX4P which dropped 1 percent and was the worst-performing European sector.

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."

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