LONDON: European shares retreated from record highs on Tuesday, although strong corporate earnings and hopes of a recovery kept losses limited as investors awaited fresh cues from economic data due this week. The pan-European STOXX 600 closed 0.2% lower at 482.71 points, holding just below its record peak hit last week.
Insurers were among the biggest drags on continental European markets, falling 0.8%. German group Munich Re fell 2.5% after warning of more COVID-related losses in its reinsurance business. British insurer Direct Line also slipped 4.2% after reporting lower-than-expected growth in quarterly premiums. Bank stocks tracked declines in bond yields, while basic resources stocks shed 1.1%. Renault rose 3.8% to the top of France's CAC 40 after its Japanese partner Nissan reported a quarterly profit and hiked its full-year forecast.
The STOXX 600 had marked eight straight sessions of gains, with France's CAC 40 and Germany's DAX breaching new records in the first week of this month on the back of strong corporate earnings and the European Central Bank's dovish stance.
A survey showed investor sentiment in Germany, the euro zone's biggest economy, rose unexpectedly in November on hopes that inflation will ease next year and economic growth will pick up.
"The equity rally has been impressive," said Ankit Gheedia, head of BNP Paribas' equity and derivatives strategy for Europe.
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