* STOXX 600 hits record high of 460.51
* Focus on Fed's policy meeting this week
* Energy stocks lead European sectors
* Germany's Teamviewer among top STOXX 600 gainers
(Updates to market close)
By Sagarika Jaisinghani and Ambar Warrick
June 14 (Reuters) - European shares ended at a record high
on Monday as energy stocks surged on strength in the oil market,
while expectations of accommodative monetary policy grew even as
a global economic recovery picked up speed.
The pan-European STOXX 600 rose 0.2% to a
record-high close of 458.32 points. The index had touched an
all-time high of 460.51 earlier in the session.
Energy stocks were the best performers, surging 2%
as oil prices surged to an over two-year peak on expectations of
strong global demand this year.
Royal Dutch Shell was the top boost to the sector,
rising 2.7% after Reuters reported the firm was reviewing its
holdings in the largest U.S. oil field for a potential sale.
"Oil’s resilience in the face of warming U.S.-Iran relations
suggests that the supply dynamic continues to play second fiddle
to the expectation that demand will keep building into the
second half of the year," said Chris Beauchamp, chief market
analyst at IG.
Germany's DAX came off a record high, while the
UK's FTSE 100 scaled its highest level since February
2020, but trimmed some gains as investors awaited an update on
Britain's COVID-19 lockdown measures.
After the European Central Bank last week kept monetary
policy unchanged at accommodative levels, all eyes this week
will be on the U.S. Federal Reserve's policy meeting, with the
bank expected to maintain its dovish stance.
Any cues that policymakers might be digging in for a more
sustained rise in inflation could spark fears of a
sooner-than-expected unwinding of easy money policies and hurt
stocks, analysts said.
"If central banks start to lay out a path that involves a
withdrawal of stimulus, markets could get spooked. No one is
seriously suggesting a rise in rates yet, but there is scope to
reduce the monthly bond purchase amount without jeopardising the
recovery," said Michael Hewson, a market analyst at CMC Markets
UK.
Italy's stock index rose 0.2%, while its 10-year
sovereign bond yield sank to eight-week lows on
continued dovish signals from the ECB.
German software developer Teamviewer AG jumped 5.9%
to near the top of the STOXX 600, after it announced a
partnership with software giant SAP.
On the other hand, Dutch medical equipment company Philips
tumbled 4.2% and was among the worst performers on the
STOXX 600 after it said it would recall some CPAP breathing
devices and ventilators globally because of a foam part that
might degrade and become toxic.
(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by
Shounak Dasgupta and Jonathan Oatis)
