European Shares Rise In Cautious Trade

European stocks traded higher on Monday ahead of a busy week for U.S. economic data and a slew of central bank decisions.

Investors shrugged off data that showed Germany’s wholesale price inflation accelerated in November to the highest level in nine months.

Wholesale prices rose 1.5 percent year-over-year in November, faster than the 1.1 percent rise in October. Moreover, this was the highest rate since February, when prices rose 1.6 percent.

The pan-European Stoxx 600 was up half a percent at 581.20 in early trade. The German DAX edged up by 0.4 percent, France’s CAC 40 climbed 0.6 percent and the U.K.’s FTSE 100 was up half a percent.

In corporate news, health technology company Royal Philips fell 1.4 percent after it has entered into an agreement to acquire SpectraWAVE.

Sika gained half a percent. The specialty chemicals company said it would acquire Finja for an undisclosed amount.

Sanofi shares slumped 5 percent. The French pharmaceutical firm said its experimental drug tolebrutinib failed to meet its primary endpoint in a Phase 3 clinical trial.

Also, the company said a U.S. regulatory decision on its tolebrutinib experimental treatment for a type of multiple sclerosis would likely be delayed again.

Hikma Pharma lost 1.7 percent after its Chief Executive Officer Riad Mishlawi stepped down by mutual agreement.

Defense stocks were under pressure after Volodymyr Zelenskyy offered to drop Ukraine’s aspirations to join the Nato military alliance following talks with the United States. Rheinmetall dropped 1.8 percent and Renk shed 2.2 percent.

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