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* BP, Shell supported by output cut deal
* AstraZeneca slides after Gilead merger report
* Investors continue to move out of tech, healthcare
(Adds comment, updates prices)
By Sruthi Shankar
June 8 (Reuters) - European shares pulled back from
three-month highs on Monday, with losses in healthcare and
technology stocks stopping a recent rally on hopes of a
post-coronavirus economic recovery.
The pan-European STOXX 600 declined 0.4%, as
investors moved out of expensive names, while bidding up
laggards such as banking, auto and oil & gas
stocks.
Europe's healthcare index dropped 1.5%, with
AstraZeneca sliding 2.7% after Bloomberg reported it had
approached U.S. rival Gilead Sciences about a possible
merger to form one the world's largest drug companies.
In a stunning rally last week, the STOXX 600 closed 14%
below its all-time high on Friday and the U.S. tech-heavy Nasdaq
breached its intraday record high as improving economic
data and fresh stimulus measures lent weight to hopes that the
worst is behind.
"European markets have opened lower this morning, as markets
temper some of their enthusiasm after three strong weeks of
gains," said Michael Hewson, chief market analyst at CMC
Markets.
Data released earlier showed German industrial output posted
its steepest plunge on record in April, while a
sharper-than-expected fall in China's imports in May pointed to
mounting pressure on manufacturers as global growth stalls.
However, losses in European markets were contained.
"The market continues to view all of these economic reports
as rear-view mirror stuff, as optimism over economic re-openings
continues to drive sentiment," said Hewson.
Oil majors Royal Dutch Shell, BP and Total
rose between 0.7% and 3% as crude prices climbed after
major producers agreed to extend a deal on record output cuts.
Danske Bank jumped 8.2% after Estonian bank LHV
agreed to buy its Estonian corporate and public
sector credit portfolio.
German card payments company Wirecard dropped 3.3%
after prosecutors opened proceedings against its entire
management board as part of a market manipulation probe.
Swedish telecoms gear maker Ericsson's fell 2.2%
as it said its second-quarter results will take a hit of about 1
billion crowns ($108.8 million) due to write-downs of product
inventory in the Chinese market.
Shares in Delivery Hero SE and Just Eat
Takeaway.com NV dropped about 3% after a report that
said U.S. food delivery company Grubhub Inc had
received takeover interest from the two.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Arun
Koyyur, Bernard Orr)