European stock markets traded higher in early action on Wednesday, with Spanish retailer Inditex SA surging more than 8% on well-received results, boosting the sector and rallying stocks in Spain. Investors also picked up drug shares and banks.
The Stoxx Europe 600 index (XX:SXXP) -0.52% rose 0.3% to 244.14, after rising 0.6% the prior session.
Tuesday’s gains came as the yield on Spain’s 10-year government bond (ES:10YR_ESP) -0.24% shot to euro-era highs on continued concerns about the plan to bail out the country’s troubled banks. The yield on that bond rose slightly Wednesday to 6.75%.
Lifted by Spanish retailer Inditex SA (ES:ITX) +8.02% , the IBEX 35 index (XX:IBEX) +0.95% jumped 1% to 6,589. Inditex shot higher after first-quarter results beat forecasters’ expectations.
Swedish retailer Hennes & Mauritz AB (SE:HMB) +1.81% rose 2.7%, helping underpin the Stoxx 600.
Faring less well in the retail space, shares of grocer J Sainsbury PLC (UK:SBRY) -3.23% fell 2.5% after a trading update failed to impress investors. Comparable sales excluding fuel increased 1.4% in the first quarter, while total sales rose 3.6%.
The FTSE 100 index (UK:UKX) -0.20% rose 0.4% to 5,495, lifted by miner Anglo American PLC UK:AAL +0.10%
Shares of Establissements Maurel & Prom SA (FR:MAU) +17.69% were the top Stoxx 600 gainer, up 14% on reports that Royal Dutch Shell PLC RDS.A +1.68% (UK:RDSA) +0.34% is interested in buying the French oil group.
Elsewhere, the German DAX 30 index (DX:DAX) -0.42% rose 0.7% to 6,203.79, led by a 1.2% rise for drugmaker Bayer AG DE:BAYN +0.47% and a 2% rise for utility E.On AG (DE:EOAN) +2.48% .
Vivendi SA (FR:VIV) +1.07% rose 1.2% in Paris after Jefferies analysts upgraded the shares to hold from buy.
BNP Paribas SA (FR:BNP) +0.68% and Societe Generale SA (FR:GLE) +1.52% rose 1.4% and 2.2%, respectively.
The French CAC 40 index (FR:PX1) -0.36% rose 0.6% to 3,065.38.
