Europe open: Shares hit record highs on Deutsche Wohnen takeover

The pan-European STOXX 600 index rose 0.3% to 446.43 points. Germany’s DAX gained 0.67%, also hitting a record high after a long weekend, as residential property group Vonovia agreed to take over its rival.

Shares in Deutsche Wohnen surged 15.7%, while Vonovia fell 6.2%.

UK shares were lower, despite a fall in government borrowing in April, although it remained at its second highest level on record for the month.

Public sector borrowing was £31.7bn, down £15.6bn from the same month last year and marking the first annual fall since the start of the pandemic. The amount was comfortably below the Office for Budget Responsibility’s forecast of £39bn and consensus expectations of £32.4bn.

Shares in AstraZeneca fell as the UK competition regulator said it was starting a probe into its $39bn tie-up with Alexion of the US. Rival drug maker GlaxoSmithKline also fell on the news.