Europe close: Dax at record highs, FTSE Mibtel breaks past resistance

European shares were mostly higher again on Thursday with German and Italian markets outperforming the benchmark Stoxx 600 index.

The pan-European Stoxx 600 was up 0.56% at 409.54. Italian shares continued to rally, with the FTSE Mibtel tacking on another 1.65% a day after former European Central Bank chief Mario Draghi agreed to help form a unity government. Germany's DAX rose 0.91% as the governing coalition agreed extra Covid relief measures.

To take note of, the FTSE Mibtel managed to hit a fresh post-pandemic high on Thursday while the Dax set a fresh all-time high.

In the US, Democrats continued their efforts to get President Joe Biden's economic relief package through Congress without Republican support. Investors were also eyeing weekly jobless claims, which are expected to show a further fall after last week’s fall to 847k from 900k.

In equity news, shares in German IT group Cancom rose 3% as it reported strong fourth quarter earnings.

Bayer AG shares edged higher after the company struck a $2bn deal to resolve future legal claims that its widely used weedkiller Roundup causes cancer.

Deutsche Bank shares fell back despite the German lender reporting that it swung to a small annual profit in 2020, its first since 2014, on the back of strong gains at its investment banking division.

Caterer Compass Group gained as the firm told shareholders it was sorry for substandard free UK school meal packages and said revenue fell by a third in the first quarter, with no pickup expected in the second quarter.

Barratt Developments was on the up following the release of first-half figures showing pre-tax profit edged higher amid record completions and as the housebuilder declared an interim dividend.

BT Group relinquished early gains after saying it was on track to meet full-year forecasts, although third-quarter core earnings fell.

Royal Dutch Shell fell 1.54% after the company reported its worst financial performance in two decades as the Covid pandemic hammered energy consumption. However, it also signalled an increase in the first quarter dividend.

Unilever slumped 6% as the consumer goods company increased its fourth-quarter dividend and reported a decline in annual profit caused mainly by currency swings.