European Stocks Hit New Highs Amid Chemical and Healthcare Sector Surge

European shares reached record highs due to strong performances in the chemicals and healthcare sectors. Influential moves included EMS Chemie's upgrade by UBS and AstraZeneca's acquisition. Meanwhile, EU-Mercosur trade impacts and challenges for luxury brands amid Saks Global's bankruptcy added complexity to the market landscape.

European shares reached an unprecedented high on Wednesday, driven by strong performances in the chemicals and healthcare sectors. The pan-European STOXX 600 rose 0.18% to close at 611.56 points, with chemicals showing a notable 2% increase. This surge was led by EMS Chemie, which saw an impressive 8% rise after being upgraded to 'buy' by UBS.

AstraZeneca's stock increased by 2.4% following its acquisition agreement with Modella AI, bolstering the broader healthcare sector by 1.3%. Market strategist Michael Field from Morningstar highlighted the influence of the EU-Mercosur trade agreement, unlocking new export opportunities for pharmaceuticals, industrials, and chemicals.

Despite these gains, Germany's DAX index slipped by 0.5%, impacted by a downturn in technology stocks. Concurrently, the luxury market faced pressures due to Saks Global's bankruptcy implications, with luxury stocks dropping 0.3% by session's end.

(With inputs from agencies.)