(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* China-focused sectors rally
* Airbus down as U.S. raises aircraft import fees
* Germany's DAX hits record high
(Adds comment, updates prices)
By Ambar Warrick
Feb 17 (Reuters) - European shares hit a record high on
Monday, with automobile stocks leading gains amid fresh attempts
by China to limit the economic impact of the coronavirus
outbreak.
Automobile stocks .SXAP , which are highly sensitive to
Chinese demand and industrial output, surged 2%, led by French
car parts group Faurecia EPED.PA after reporting a rise in
annual profits and sales. Given that several European companies, particularly the
automobile sector, depend on China as part of their supply
chain, local markets are likely to take any fresh stimulus
measures as a positive.
China cut interest rates and flagged possible tax cuts as it
struggles to limit the economic impact from the coronavirus
outbreak, which has killed more than 1,700 people in the
country. "The fact that China keeps signalling that they're ready to
somewhat bubblewrap the economy by pumping in stimulus - that's
what's keeping markets in the green today," said Connor
Campbell, analyst at financial spread better Spreadex.
The pan-European STOXX 600 index .STOXX rose 0.2% by 0906
GMT, having touched a record high of 432.48 earlier in the day.
Market activity is expected to be light through the rest of the
day on account of a U.S. holiday.
The automaker-heavy German stock index .GDAXI also touched
a record high.
"This week is interesting because we've got manufacturing
PMIs (on Friday), I think it will give an idea of some impact on
supply chains from the coronavirus," Spreadex's Campbell added.
The resources .SXPP and oil and gas sectors .SXEP were
also among the best performing subindexes for the day, given
their heavy export exposure to China. Both sectors have also
taken some support from recent weakness in the euro EUR= and
the pound GBP= .
Among individual movers, London-listed Jupiter Fund
Management JUP.L topped the STOXX 600 after it agreed to buy
Merian Global Investors in a deal that will make Jupiter
Britain's second-largest retail funds provider. German herbicide providers Bayer AG BAYGn.DE and BASF SE
BASFn.DE fell 2.3% and 1.1%, respectively, after a U.S. peach
grower was awarded $265 million in a lawsuit against the two.
French aircraft maker Airbus SE AIR.PA fell 1.7% after the
U.S. on Friday said it would lift tariffs on aircraft imported
from the EU amid a nearly 16-year transatlantic dispute over
aircraft subsidies.