Home Commodities Commodity stocks lead European shares higher on China COVID relief

Commodity stocks lead European shares higher on China COVID relief

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The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 24, 2022. REUTERS/Staff

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June 28 (Reuters) – European shares rose on Tuesday, led by gains in commodity-linked stocks and automakers after China relaxed its COVID-19 quarantine mandate, while investors awaited ECB President Christine Lagarde’s speech later in the day.

The continent-wide STOXX 600 index (.STOXX) 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 (.SXEP) and mining stocks (.SXPP) 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.

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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. read more

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

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

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

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Reporting by Devik Jain in Bengaluru; Editing by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles.

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