Europe open: Shares hover near highs as Ocado attracts interest
European shares nudged fresh records at the opening with investor optimism tempered by rising Covid case numbers and lockdowns in the region.
The pan-European Stoxx 600 index was up 0.38% in early deals, just below the 490-point mark. All major regional bourses were higher.
In the UK, retail sales increased 0.8% month-on-month in October, slightly exceeding the 0.5% expected by economists. Excluding fuel, sales grew by 1.6% on the month against a 0.6% forecast, as the country faced a spike in energy prices.
Elsewhere on the Continent, German Chancellor Angela Merkel announced restrictions on for the unvaccinated as a "very worrying" fourth wave of Covid-19 hit the country. Austria and the Czech Republic are also imposing tighter restrictions.
In equity news, UK online grocery delivery service and warehouse system designer Ocado gained almost 5% after a Deutsche Bank note suggested 50% shareholder Marks & Spencer could be mulling a potential buyout.
“Cash flow is no longer being squandered on an unsustainable dividend but saved to recover the investment grade credit rating that may be required to buy out Ocado,” DB said in a research note.
Anglo-French home improvement retailer Kingfisher fell to the bottom of the Stoxx as it posted a 2.4% slide in third-quarter sales but said the final quarter of the year was off to a strong start.
Polish parcel locker company InPost also gained after two successive sessions of steep declines.
French luxury group Hermes was up after talks that it may be added to the Eurostoxx 50 index during a December review.