Dec 3 (Reuters) - European shares edged higher on Wednesday, with technology and industrial stocks leading gains as global investor appetite improved, offsetting a mixed slate of corporate news. The
European Shares Steady; Inditex Surges on November Sales
By Anastasiia Kozlova
Dec 3 (Reuters) - European shares ended largely steady on Wednesday, aided by gains for technology that offset sharp declines in financials, while Inditex surged to a near one-year high on a strong start to the winter sales.
The pan-European STOXX 600 closed 0.08% higher at 576.13 points, while major regional indexes in Germany and France fell 0.1%, each.
Spain's benchmark index was a standout, rising 0.7%, lifted by an 8.9% jump in Inditex after the Zara owner beat estimates for the start of its fourth quarter, reporting currency-adjusted sales growth of 10.6% in November, a period that includes the key Black Friday weekend.
The stock topped the STOXX 600 and pushed the broader retail sub-index up 3.5%. Inditex, widely seen as a bellwether for global fast fashion, offered an early read on how retailers fared during the crucial discounting season and signalled a strong start to the company's biggest revenue quarter.
"[The] strength of the retail sector depends on Black Friday. But...the fact that the November Eurozone PMI was revised upwards today for the composite index, that tells you that the industrial, the basic materials, etc. are benefiting from that sort of positive data," said Axel Rudolph, senior technical analyst at IG Group.
Euro zone business activity hit a 2.5-year high in November as services strength offset manufacturing weakness, with the composite PMI rising to 52.8 from 52.5. Services PMI climbed to 53.6, its highest since May 2023.
Technology stocks extended gains for a fourth session, rising 1.3%. Defence stocks climbed 2.3% after Russia said the U.S.-led Ukraine peace plan did not satisfy its requirements yet.
Ukraine's Prime Minister Yulia Svyrydenko hailed the European Commission's proposals to help cover Ukraine's financing needs on Wednesday as "an important and responsible step forward."
Basic Resources stocks jumped 2.6% and energy sub-index added 0.6%.
Insurers and banks capped gains on the STOXX 600, falling 1.4% and 0.9%, respectively, after a strong rally last week.
Meanwhile, some weak data and dovish comments from some Federal Reserve policymakers have renewed expectations of an interest rate cut in December, among the driving forces of gains in markets last month.
"Markets should see that as reassuring because the Fed rate cuts are an important part of the positive narrative for next year... it's going to be the main catalyst," said Kiran Ganesh, multi-asset strategist at UBS Global Wealth Management.
On Wednesday, data showed U.S. services activity held steady in November, while private payrolls unexpectedly declined in November.
Among other stocks, German fashion group Hugo Boss fell 9.9% after warning its sales would fall next year as it embarks on a strategic reset.
Airbus shares rose 4% rebounding after a two-day slump after the plane-maker trimmed its delivery target by 30 jets but reaffirmed its 2025 financial guidance.
Sainsbury's slid 4.1% after Qatar's sovereign wealth fund moved to offload a further chunk of its stake, ending its near two-decade reign as the largest shareholder.
(Reporting by Anastasiia Kozlova, Purvi Agarwal and Tharuniyaa Lakshmi; Editing by Mrigank Dhaniwala, Alexandra Hudson)
