European shares inch higher as healthcare, financials rise

(Reuters) – European shares advanced slightly on Wednesday, led by heavyweight healthcare and financial stocks, while focus remained on the global monetary policy trend in the New Year.

The pan-European STOXX 600 added 0.2% as of 0821 GMT, hovering near its highest level in three weeks.

Financial services was amongst the top sub-sectors, adding 1.1% with EQT (ST:EQTAB) gaining 2.6% after Deutsche Bank (ETR:DBKGn) upgraded the investment company to “buy” from “hold”.

Healthcare added 0.4%, with index heavyweight Novo Nordisk (NYSE:NVO) up 1.6%, while banks gained 0.8% with HSBC advancing 1.2%.

Capping gains, however, yield on Germany’s 10-year bond, the region’s benchmark, eased slightly but hovered near its highest level two months.

Government bond yields around the world rose tracking U.S. Treasuries after data on Tuesday raised concerns that the Federal Reserve might slow down its pace of policy easing.

Pluxee advanced 10.1% after the French voucher and benefits company posted 12.1% organic growth in its first-quarter operating revenue, beating market expectations.

Shell (LON:SHEL) slipped 1.8% after the energy major trimmed its liquefied natural gas production outlook for the fourth quarter.