European equities swung higher Wednesday, as gains for health-care shares led by biopharma company Shire PLC helped offset losses in the battered tech sector. The Stoxx Europe 600 index ended up 0.5% to 369.26, led by the utility and health care sectors. But the technology sector fared the worst. The index on Tuesday climbed 1.2%, driven by easing concerns about a global trade war. In Paris, the CAC 40 index reversed course and rose 0.3% to 5,130.44, and the U.K.’s FTSE 100 index turned higher, finishing up by 0.6% at 7,044.74. Germany’s DAX 30 fell 0.3% to 11,940.71, but pared a deeper loss. The euro traded at $1.2349, down from $1.2405 late Tuesday in New York. In the fixed-
income market, the yield on Germany’s 10-year bund was up less than 1 basis point at 0.50%. The health-care sector emerged as a bright spot in Wednesday’s trade, lit up as Shire PLC shares rallied as much as 26% after Japanese biopharma Takeda Pharmaceutical Corp. said it’s considering making an offer for its rival. Shire shares closed up 15.6%, the strongest percentage gain since June 2014. European equities had dropped more than 1% earlier in the session following a rout in tech stocks on Wall Street Tuesday. That slide left the Nasdaq Composite Index down 2.9% for Tuesday and while losses were less pronounced in the follow-up U.S. session on Wednesday the tech-heavy Nasdaq was still in the red. down 2.9% for Tuesday and while losses were less pronounced in the follow-up U.S. session on Wednesday, the tech-heavy Nasdaq was still in the red. On Wednesday, the StoxxEurope 600 Technology was dragged down 1.8%, its worst session since March 22, according to FactSet data. Investors dumped tech-sector shares, which have been at the forefront of Wall Street’s run higher for more than a year, on various regulatory concerns. That included developments for electric car maker Tesla Inc. and news that the U.S. is considering a ban on Chinese investment in certain sensitive technologies. Nervousness among investors have led many to flock to the perceived safety of bonds, sending prices higher and yields lower. The yield on Germany’s 10-year bund on Wednesday fell below 0.5% for the first time since January, according to Tradeweb data. Lower bond yields helped interest-rate sensitive utility stocks gain ground Wednesday. Tech names finished at the bottom of the Stoxx600 index. Chip maker and Apple iPhone supplier AMS AG sank 9.8% and chip maker STMicroelectronics fell 5.3%. Unilever PLC leapt 4.7% after UBS upgraded the consumer products heavyweight to buy from neutral and said a roughly 17% drop in its shares since October “creates a compelling entry point,” for investors. Subsea 7 fell 5.9% following a ratings downgrade of the oil-services provider to hold from buy at Jefferies. “Backlog phasing and margin outlook drives material downgrades to our estimates,” said analyst Mark Wilson in a research note.
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