# European stocks extend record rally on lift from insurers, M&A activity Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-12 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: European Shares Hit Record High on Strong Insurer Earnings Meta Description: European shares rise to record highs on strong insurer earnings and M&A deals, offsetting mining stock fall. STOXX 600 up 0.1% for ninth straight session. URL: https://financedigest.com/european-stocks-extend-record-rally-on-lift-from-insurers-ma-activityhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-12t073356z1lynxmpeh7b0b4rtroptp3europe-stocks-1736838025398-compressed.jpg) By Sruthi Shankar and Shreyashi Sanyal (Reuters) -European shares rose on Thursday, hitting yet another record high, as strong earnings from insurers and M&A activity in the UK helped offset a fall in mining stocks. The pan-European STOXX 600 index inched up 0.1%, extending gains to a ninth consecutive session. British [insurer Aviva rose 3.5% after saying](https://www.financedigest.com/post-brexit-insurance-reform-clear-before-december-says-boes-woods.html "Post-Brexit insurance reform clear before December, says BoE’s Woods") it would return at least 4 billion pounds ($5.5 billion) to shareholders, while Zurich Insurance Group added 3.8% on reporting a 60% jump in first-half business operating profit. Dutch insurer Aegon NV jumped 7.3% after posting much better than expected second-quarter earnings. [Deutsche Telekom](https://www.financedigest.com/deutsche-telekom-reaches-majority-stake-in-t-mobile-u-s-ceo.html "Deutsche Telekom reaches majority stake in T-Mobile U.S. – CEO") rose 2.8% after raising its profit outlook for the second time this year. The benchmark STOXX 600 clocked its longest winning streak since June, as earnings [reports and optimism related to the pace of vaccination across Europe reinforced investor](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") confidence in an economic recovery. Data showed Britain’s economy grew by a faster than expected 1% in June, after many hospitality firms restarted indoor service in mid-May and as more people visited doctors following the pandemic, [lifting healthcare](https://www.financedigest.com/european-shares-edge-higher-on-healthcare-lift-weak-china-data-stokes-worries.html "European shares edge higher on healthcare lift, weak China data stokes worries"). Factory output fell in June in the [euro zone](https://www.financedigest.com/euro-zone-recovery-gathers-pace-allays-fears-of-recession-pmi.html "Euro zone recovery gathers pace, allays fears of recession-PMI"), as Germany, the bloc’s industrial powerhouse, faltered amid supply bottlenecks, European Union estimates showed. The second successive monthly fall in euro-zone industrial [production in June was largely due](https://www.financedigest.com/apple-likely-to-cut-iphone-13-production-due-to-chip-crunch-bloomberg-news.html "Apple likely to cut iPhone 13 production due to chip crunch -Bloomberg News") to ongoing supply-chain difficulties in Germany,” said Andrew Kenningham, chief Europe economist at Capital Economics. As these will ease only slowly, we don’t [expect industry to contribute much to economic growth](https://www.financedigest.com/hydrolyzed-collagen-market-sales-is-expected-to-clock-high-growth-rate-by-forecast-2028.html "Hydrolyzed Collagen Market Sales Is Expected To Clock High Growth Rate By Forecast 2028") in the coming months, even though demand is still red hot,” Kenningham added. Cineworld Group rose 3.9% after it said it was considering a listing of itself or a partial listing of its movie chain Regal on [Wall Street](https://www.financedigest.com/wall-street-stocks-power-higher-as-treasury-yields-and-dollar-ease.html "Wall Street stocks power higher as Treasury yields and dollar ease"). Meanwhile, Adidas rose 1.6% after selling its Reebok brand to Authentic Brands [Groups for up to 2.1 billion euros](https://www.financedigest.com/telecoms-group-orange-signs-sustainability-linked-refinancing-of-6-billion-euros-syndicated-credit-facility.html "Telecoms group Orange signs sustainability-linked refinancing of 6 billion euros syndicated credit facility") ($2.5 billion), as the German sporting goods company sought to draw a line under an ill-fated investment. [Stock Spirits Group soared 43.7% funds as funds affiliated with private-equity firm CVC agreed to take over the London-listed vodka maker in a deal valuing it at 767 million pounds](https://www.financedigest.com/the-pound-gilts-and-stocks-likely-winners-and-losers-from-uk-budget.html "The pound, gilts and stocks: likely winners and losers from UK budget") ($1.1 billion). Dragging down miners, UK-listed shares of global miner [Rio Tinto](https://www.financedigest.com/rio-tinto-says-output-from-2-4-billion-serbia-lithium-project-to-be-delayed.html "Rio Tinto says output from .4 billion Serbia lithium project to be delayed") slipped 5.5% on trading ex-dividend. (Reporting by Sruthi Shankar and Shreyashi Sanyal in BengaluruEditing by Shounak Dasgupta and David Holmes) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---