Stock market

Germany leads European shares to record highs after big property deal

Stock Markets1 hour ago (May 25, 2021 03:26AM ET)2Germany leads European shares to record highs after big property deal© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 21, 2021. REUTERS/Staff

(Reuters) – European stocks hit record highs on Tuesday as a billion-dollar takeover deal combining two of Germany’s biggest property developers and soothing comments about inflation drove an upbeat mood among investors.

The pan-European STOXX 600 index rose 0.3% to 446.44 points — an all-time high. The index surpassed its early-May peak of 446.19.

Germany’s DAX gained 0.8%, also hitting a record high after a long weekend, boosted by news that Europe’s largest residential property group Vonovia SE agreed to take over its rival Deutsche Wohnen (OTC:DTCWY) for about 18 billion euros ($22 billion).

Deutsche Wohnen surged 15.7%, while Vonovia slipped 6.2%. Europe’s wider real estate index added 0.8%.

Technology stocks rallied 1.0% after their Wall Street peers climbed overnight on fresh insistence from U.S. Federal Reserve officials that loose policy would stay on hold.Germany leads European shares to record highs after big property deal2Comments (2)

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