Banks, retail stocks power European shares in thin trading

European shares extended gains to a third straight session on Wednesday, led by banks and retail shares, although rising coronavirus cases fuelled concerns about the economic outlook for next year.

The pan-European STOXX 600 added 0.2% as of 0815 GMT, with retail, banks and travel stocks rising between 0.3% and 1.3%. The benchmark hit a five-week high in its previous session.

France’s CAC 40 had also reached a new record, although the index was flat in early trade on Wednesday after the country’s new coronavirus cases in a 24-hour period hit a record high of 179,807 on Tuesday, one of the highest one-day tallies worldwide since the start of the pandemic.

Britain’s FTSE 100 (FTSE), meanwhile, jumped 1% on higher oil prices and slim prospects of lockdowns till the year-end. (L)

Spain’s IBEX was also flat a day after its parliament approved a 2022 budget and a major spending plan that could be one of the largest in the country’s history.

BPER Banca added 1.7% after agreeing to hire 550 new staff and make 300 temporary contracts permanent on top of 1,700 exits that Italy’s fifth-largest bank already announced in September.