European shares: European shares pause after three-day rally

European shares were flat on Thursday after a three-day rally on hopes of a swifter global economic recovery and an upbeat sentiment in Italy as former European Central Bank chief Mario Draghi took on the task of forming a new government.

The STOXX 600 index was flat in early trading, while Milan’s FTSE MIB index fell 0.2 per cent.

Markets remained hopeful after Democrats pushed ahead on Wednesday with a maneuver to pass U.S. President Joe Biden’s $1.9 trillion Covid-19 relief package without Republican support.

Among early gainers, Bayer AG jumped 5.5 per cent after the German company struck a $2 billion deal to resolve future legal claims that its widely used weedkiller Roundup causes cancer.

Deutsche Bank’s shares rose 0.6 per cent after the German lender swung to a small annual profit in 2020, its first since 2014, on the back of strong gains at its investment banking division.

The European blue-chip index fell 0.2 per cent, while the euro zone blue-chip index rose 0.1 per cent.