LONDON (Reuters) – Shares of automakers helped push the European stock market to new highs on Wednesday, although a new year’s bullish trend appeared to be losing steam on Covid-19 fears and slowing growth.
The pan-European Stoxx 600 index ended the trading session 0.1% higher at 494.35 points, the third consecutive record close.
However, a recent bullish trend in the market appears to be losing momentum amid concerns about the Corona virus pandemic Omicron, rising interest rates and mixed economic data.
The index of automakers, the best performer in today’s session, rose 2.7 percent to a record level, while investors expect production to recover from a shortage in semiconductors and that auto sales are also likely to improve.
Shares of German carmaker BMW rose 2.2 percent after it announced record sales in 2021.
Renault’s share jumped 5.3%, to be the top gainer in the French CAC 40 index, after Qualcomm announced agreements to supply electronic chips to car manufacturers, including the French company.
But JPMorgan has taken a cautious stance on the sector in 2022, citing consumer skepticism about electric cars in Europe.
The index of mining companies rose 1.6 percent, following the rise in commodity prices, with investors betting that demand would recover from the slowdown triggered by the pandemic.
The banking index rose 0.2 percent, supported by expectations of an increase in interest rates.
Technology shares fell 0.5%, as the prospect of higher interest rates makes the sector look less attractive.
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