Spain's Inditex, owner of Zara, saw its shares hit a record high after reporting positive early spring sales. Photograph: Emilio Parra Doiztua/Bloomberg
European shares touched new record highs on Wednesday, boosted by upbeat corporate updates from retail stocks and the utilities sector. The advance was partially offset, however, by losses among automotive stocks. Upbeat corporate updates have fostered a risk-on sentiment among European investors, reflecting confidence in the economy. Expectations of an interest-rate cut from the Federal Reserve and the European Central Bank in June have also helped stocks rally.The Iseq fell 0.5 per cent, underperforming the mostly positive or flat trend across Europe, as the Dublin market was weighed down by a 1 per cent fall for bothThe FTSE 100 closed up 0.
The retail index emerged as the top sectoral performer, adding 3.4 per cent on the back of a 18.9 per cent jump in. The online fashion retailer forecast a return to growth this year and said it would buy back up to €100 million of shares. Zara-ownersaw its shares hit a record high, with the Spanish stock ending up 7.7 per cent after it reported positive early spring sales.
Adidas posted its first loss in over 30 years in 2023, but its shares reversed course from early declines to close up 3.8 per cent.The tech-laden Nasdaq fell on Wednesday as rising US Treasury yields hit market-moving growth stocks, while investors awaited more data this week for clues on the timing of the Federal Reserve’s interest-rate cuts.