Mining leads the rise of European stocks… and Italian losses curtail gains
European stocks rose on Monday, supported by continued gains in miners, on bets that a recovery in demand in China will offset losses in the manufacturing sector and a drop in Telecom Italia.
The pan-European STOXX 600 index closed 0.1% higher, ahead of economic data scheduled for release later this week.
The basic resources index jumped 2.4% following the rise in industrial metal prices, hoping for a recovery in demand from China, the largest consumer, and supported by disruptions in global mining supplies.
Global markets stumbled for most of last week following higher-than-expected US inflation data, adding to a growing body of evidence that sharp interest rate increases have not yet managed to calm prices to the satisfaction of the Federal Reserve (the US central bank).
The industrials sector fell 0.3%, and the interest rate-sensitive technology sector fell 0.6%, reducing the gains of the Stoxx 600 index.
Telecom Italia shares fell 2.7% following failing to submit at the beginning of the week a government-sponsored bid to compete with the bid of the US investment company KKR, with the aim of acquiring the network that monopolizes the country’s mobile phone sector.
The Euro Stoxx index, which includes the largest companies in the euro zone, fell 0.1%.
(Archyde.com)
