The
pan-European STOXX 600 index was flat after notching a record
high earlier, with sectors considered more stable such as real
estate and telecoms leading the gains.
The travel and leisure index rose 0.7%, supported largely by
gains in low-cost carrier easyJet after Goldman Sachs upgraded
the stock to "buy".
Data showed German industrial output fell unexpectedly in April,
in a further sign that semiconductor shortages and other supply
bottlenecks are hampering the recovery in Europe's largest
economy.
Automakers fell 0.5% after a six-day rally that took the index
close to its record peak.
"I think it says more about the supply constraints. The big
question is how long will these remain," said Teeuwe Mevissen,
senior market economist at Rabobank.
"Markets are in a wait-and-see mode. Valuations are high, and
they need new catalysts to justify further buying."
UK's blue-chip FTSE 100 held steady, boosted by a weaker pound
and a 1.6% rise in British American Tobacco after it raised its
annual revenue growth forecast.
Investor concerns were, however, stoked as The Times reported
that Britain's next phase in easing of lockdown on June 21 could
be delayed by a fortnight amid concerns over the spreading of
new variants of COVID-19.
Global markets traded in a tight range ahead of a policy meeting
of the European Central Bank and U.S. inflation data this week.
The ECB is expected to reaffirm its emergency bond purchases
programme at the current pace as signs emerge that the euro zone
is not recovering as fast as expected, while the inflation
reading would be the last key data ahead of the Federal Reserve
meeting next week.
Swiss contract drugmaker Lonza gained 4.5% after Goldman Sachs
upgraded the stock to "buy", while German airline Lufthansa fell
2.9% after the brokerage downgraded the stock to "sell".
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sriraj
Kalluvila)
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