* Mining stocks, banks were best performers
* Airbus jumps on hiking jet output targets
* Food and beverage stocks hurt by Tate & Lyle
(Adds comments, updates prices throughout)
By Ambar Warrick and Shreyashi Sanyal
May 27 (Reuters) - European shares closed at a record high
on Thursday boosted by Airbus after the planemaker hiked its jet
output targets, while German shares weakened after shares in
pharmaceuticals maker Bayer were hit by a court ruling.
The pan-European STOXX 600 index rose 0.3% to
446.44 points, a record closing high.
French planemaker Airbus jumped 9.2% after it set
out sweeping goals to expand production of jetliners, as the
airline industry recovers from the COVID-19 pandemic.
German shares shed around 0.3%, lagging other
regional markets, with Bayer the biggest drag on the
DAX, falling 5.0%.
The stock marked its worst day in three months after a U.S.
judge rejected its class action plan to settle future claims
related to its Roundup and other glyphosate-based weedkillers.
European shares have moved little this week, but achieved
record highs as continued affirmations of easy monetary policy
and waning concerns over inflation painted a favourable picture.
However, investors have been moving into more cyclical parts
of equity markets for protection from the risks of rising
inflation.
The European banks sector nearly 2% and basic
resources jumped 3.0%, leading sectoral gains on
Thursday.
A rise in metal prices on concerns over supply disruptions
in top copper producer Chile, also helped mining stocks
outperform.
"We continue to expect a rapid recovery which has also been
reflected in the robust performance of European and German
companies in the first quarter earnings season," said Mark
Haefele, chief investment officer of global wealth management at
UBS in a client note.
"We recommend that investors continue to position for the
reflation trade and favour reasonably valued cyclicals that
benefit from rising inflation and higher bond yields."
Food and beverage stocks were among the worst
performers, falling 0.7% on losses in British processed foods
maker Tate & Lyle. The stock shed more than 6% after
its annual revenue fell.
Among other movers, Deutsche Bank rose 1% after
Chief Executive Christian Sewing told shareholders that the
bank's multi-year overhaul is ahead of plan and remains its
primary focus, promising an era of more sustainable profit.
Puma fell 0.6% after French luxury goods group
Kering said it will sell a 5.9% stake in the German
sportswear firm through a share placement.
(Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru;
Editing by Arun Koyyur, Alexander Smith and Toby Chopra)