June 20, 2017 / 10:10 AM / 3 months ago

Consumer, tech lift euro zone shares; DAX hits fresh record

* STOXX 600 up 0.2 pct

* Germany’s DAX hits fresh record high

* Eurotunnel falls as Barclays cuts to sell (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets)

By Helen Reid

LONDON, June 20 (Reuters) - Euro zone shares rose on Tuesday and Germany’s DAX hit a fresh record high on Tuesday, bolstered by another day of gains for tech and retail sectors.

Euro zone blue chips rose 0.4 percent while the broader regional index was up 0.3 percent. The DAX scaled a record high at 12,951.54 points in early trading, underpinned by strong consumer, banking and industrial stocks.

The swift rebound in tech stocks over the past week had lifted Wall Street to another record high overnight.

In Europe, Germany’s Prosiebensat 1 led gains among media stocks after it sold its online travel agency Etraveli to CVC.

“We are slightly surprised that the company did not sell a group of travel assets, but management suggests the rest of the travel portfolio remains under review,” they added.

In the UK, gains on the FTSE 100, the worst performing major benchmark in Europe this year, were held in check by weakness in commodities companies, Wolseley and BT, though a weaker sterling helped support exporters. UK midcaps gained 0.2 percent.

Ocado rose 3.7 percent, the top European gainer, as analysts continued to speculate over a potential next target for Amazon after its acquisition of Whole Foods roiled food retailers worldwide. Tuesday’s gains put it on track for its best two-day run in nearly three years.

Analysts at HSBC said Ocado, often mentioned as an M&A target, was the least likely to be snapped up by Amazon if it extends its shopping list to UK supermarkets.

Despite overall gains, large losses among some European stocks grabbed headlines.

Groupe Eurotunnel, which runs Eurostar trains, fell 5.9 percent after suffering its second broker downgrade in as many weeks. Barclays cut the firm to a ‘sell’, citing slowing traffic and recent UK attacks which could impact tourism appetite.

A downgrade from Credit Suisse sent business support services group DKSH down 4.3 percent. The Swiss broker said it expected the firm’s growth rate to slow with downside risks including political uncertainty and demographic headwinds in Thailand weighing.

Swedish real estate company Castellum fell 4.2 percent after pension fund AP2 sold the majority of its stake.

Weaker copper and iron ore prices sent basic resources firms down 1.1 percent, while crude prices remained near seven-month lows, weighing on oil and gas stocks.

British workspace company IWG was the worst-performing European stock set after Estorn Limited placed 27 million shares in the company for sale at 345.1 pence per share.

Reporting by Helen Reid, Graphic by Thyagaraju Adinarayan; Editing by Vikram Subhedar and Ed Osmond

Our Standards:The Thomson Reuters Trust Principles.
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