Commodity stocks lead European shares higher on China COVID relief

This post was originally published on this site

The continent-wide STOXX 600 index was up 0.9%, as of 0714 GMT, rising for a third straight session amid easing concerns about aggressive central bank policy moves to tame red-hot inflation.

Europe’s oil & gas and mining stocks gained 1.9% and 3.2%, respectively, as commodity prices rallied on hopes of resurgent demand from China, the world’s second-biggest economy and top metals consumer. [O/R] [MET/L]

Health authorities said China would halve to seven days its COVID-19 quarantine period for visitors from overseas, with a further three days spent at home, while Beijing and Shanghai reported no new local COVID-19 infections for the first time in months.

Shares of luxury retailers LVMH and Richemont, which rely on China for a major part of their revenue, rose 1.4% and 2.7%, respectively. France’s CAC 40, packed with luxury names, added 1.4%.

Among other stocks, Valeo (EPA:VLOF) rose 3.1% after the French car parts company signed a major contract with BMW over advanced driving assistance systems for the German carmaker’s upcoming electric vehicle platform.

ECB President Lagarde will speak at the ECB forum in Sintra, Portugal, at 0800 GMT on Tuesday.