European shares edge ahead, helped by healthcare, oils

European shares were slightly higher on Thursday with gains in healthcare and oil stocks only in part offset by some stocks such as Daimler going ex-dividend.

The pan-European FTSEurofirst 300 index was up 0.3 per cent by 0819 GMT, adding to gains seen on Wednesday when the region’s markets rebounded from six week lows hit earlier in the week after weak economic data.

Despite the slight gains, sentiment remained fragile.

“What markets really would need are more positive global economic data ... indicating a pick up in economic activity especially in the Eurozone and the US,” City of London Markets trader Markus Huber said in a note.

In its annual report on Thursday, European Central Bank President Mario Draghi said the future of the global economy remains uncertain and there are questions about Europe's ability to weather new shocks.

Healthcare stocks were the top sectoral gainers for a second session with a rise of 1.2 per cent after the termination of the mega Pfizer/Allergan merger deal fuelled talk of other consolidation activity in the sector.

Shire rose 1 per cent after the UK drugmaker said it expected its deal to buy American drugmaker Baxalta to proceed as expected, while eslewhere in the sector Roche gained 1 per cent and Astrazeneca rose more than 2 per cent.

Oil sector stocks rose 1.1 per cent as crude futures rose on a raft of supportive indicators on Thursday, although some traders warned that physical supply and demand fundamentals did not warrant a strong price recovery at this stage.

German carmaker Daimler fell more than 3 per cent.

Among other companies going ex dividend were Skanska which fell 6.9 per cent, making the stock the biggest faller on the FTSEurofirst, and Pearson which slipped 5.5 per cent.

Wirecard rose 3 per cent after the German payments processor reported a rise in full-year profits and proposed lifting its dividend, but volumes remained low.

Today’s European research round-up

Reuters