* U.S. inflation data spurs rate hike bets
* China-sensitive euro sectors rise
* Sika hits record high on MBCC acquisition
(Updates to market close)
By Anisha Sircar and Ambar Warrick
Nov 11 (Reuters) - European stocks ended at a record high on
Thursday after relief around property developer China Evergrande
benefited China-focussed mining stocks, while a strong earnings
season buoyed broader sentiment.
The pan-European STOXX 600 closed 0.3% higher at a
new peak of 485.29 points, with the mining sector
rallying 3.7% in its best day in four months.
Diversified miner Anglo American PLC was the best
performer in the sector, jumping 5.9% after rival diamond
producer, Russia's Alrosa, posted a profit jump and
flagged a strong recovery in global diamond demand.
BHP Group rose 3.9% after it said it had won
approval for its climate roadmap. The world's largest miner aims
for net zero emissions by 2050.
Iron ore and copper prices surged following reports that
China's debt-saddled Evergrande Group had once again
averted a default. Higher commodity prices boosted the broader
mining sector.
Still, concerns over rising global inflation acted as a cap,
especially after a higher-than-expected reading from the United
States.
"There's a great deal of concern about the rather insane
hike in U.S. inflation – a 31-year-high isn't something to be
sniffed at," said AJ Bell analyst Danni Hewson.
"It's hard to see that markets think this would be the peak
of inflation when you consider external influences, particularly
supply bottlenecks and increased commodity prices, as the cost
of living goes higher."
U.S. data followed elevated producer prices from China,
while euro zone money markets also began pricing in an
earlier-than-signalled interest rate hike by the European
Central Bank.
Profits of STOXX 600 companies are expected to jump 60.7% in
the third quarter to 104.4 billion euros ($120.7 billion) from a
year earlier, latest Refinitiv data showed, an improvement from
last week's 57.2% estimate.
Goldman Sachs raised the 12-month price target for the
benchmark STOXX 600 to 530 points from 520 points, saying
European earnings have proven resilient to supply chain snags.
Among other stocks, Luxembourg-based ArcelorMittal
gained 4.1% after reporting its strongest quarter in more than a
decade.
Swiss chemical company Sika jumped 10.9% to an
all-time-high after agreeing to buy construction chemicals maker
MBCC in a $6 billion deal.
European retail property firms Klepierre,
Britain's Shaftesbury and Capital & Counties
rose after J.P.Morgan upgraded the stocks, stating the worst of
COVID-19 was "behind us".
However, retail stocks were among the biggest drags overall,
led by British discount retailer B&M, which dropped
5.6% after posting lower first-half core earnings.
(Reporting by Anisha Sircar in Bengaluru; Editing by Anil
D'Silva and Shinjini Ganguli and Kirsten Donovan)
