European shares close steady after three sessions of gains

The pan-European Stoxx 600 closed 0.14% higher at 575.00 at a near two-week high

European shares closed largely steady on Thursday after three straight sessions of gains, while Puma climbed on takeover interest and Allfunds Group jumped on an acquisition offer.

The pan-European Stoxx 600 closed 0.14% higher at 575.00 at a near two-week high. Major regional bourses were mixed. London’s FTSE 100 was flat a day after the autumn budget was announced. Germany’s DAX was up 0.2%.

Puma soared 18.9% after reports said Chinese sportswear companies Anta Sports Products and Li Ning were among the firms exploring a potential takeover of the German sportswear retailer.

Allfunds Group jumped 22.1%, marking its biggest single-day rise on record, after the fund distribution platform entered exclusive talks to be acquired by German stock exchange operator Deutsche Boerse at an initial valuation of €4.7 billion.

The stock boosted the financial services sub-index, which climbed 0.74%.

The day’s moves in the Stoxx 600 came after a three-day rally.

We’ve seen a pretty decent rally back from the drop that we saw (recent global sell-off) for markets, it takes a bit of time to find sort of a new narrative, said Joost van Leenders, senior investment strategist at Van Lanschot Kempen.

It’s a period of some consolidation after what we’ve seen, Kempen added.

Automobile stocks were the top gainers for the day, up 0.9%, helped by a 1.5% rise in Ferrari after UBS raised its price target for the carmaker.

Food and beverage stocks added 0.65%, with Davide Campari and Pernod Ricard up 3.1% and 2%, respectively. Peer Remy Cointreau gained 2.6% after its new CEO said the French spirits group is confident it will return to growth in the second half of its fiscal year.

On the flip side, healthcare shares were the biggest drag on the index, down 0.5%, weighed by declines in heavyweights Novo Nordisk and Roche.