[BENGALURU] European shares recovered from early losses to end Monday higher as gains in healthcare stocks helped head off weakness in trade-sensitive sectors like technology after the latest twist in the US-China trade war.
"It has been an impressive turnaround seeing as the major indices were offside this morning, and traders seem to have shrugged off the negative sentiment."The pan-European Stoxx 600 gained 0.4 per cent, coming off a 3-1/2-month low hit earlier in the day.Germany's DAX rose 0.6 per cent, shaking off pressure from a 8.1 per cent slide in Infineon's shares after the chipmaker agreed to buy Cypress Semiconductor for US$10 billion.
Lonza Group gained 3.9 per cent on announcing it will carve out its specialty ingredients business and cut around 130 jobs there as it reorganises the struggling division. "We can see the industrial logic...but there are bigger issues at play which could kibosh the deal. The last time Infineon attempted to acquire US assets the deal was terminated, citing security concerns raised by the US government back in 2017," Neil Campling, Mirabaud's head of TMT Research, wrote in a note on the Infineon deal.