European shares hit two-week highs on Tuesday as mining stocks led gains tracking strength in metal prices and NN (NASDAQ:NNBR) Group jumped after reporting first-half results.
The pan-European STOXX 600 gained as much as 0.6% to 458.0 points.
NN Group advanced 10.4% to the top of the STOXX 600 and a near six-month high after the Dutch insurer said its capital position had improved in the first six months of 2023.
European miners climbed 1.4% as copper prices rose on a softer dollar. Top-consumer China’s recent policy support, halving stamp duty on stock trades, also continued to buoy sentiment.
“The fact that we are now seeing some serious moves by Chinese authorities to stoke growth will be incredibly welcomed by investors,” said Danni Hewson, head of financial analysis at AJ Bell.
“But that said, there is still the expectation that we have not reached critical mass yet; we are still expecting a degree of volatility.”
Europe’s largest bank HSBC, which also does business in China, gained 0.4% while insurer Prudential rose 3.9%, boosting the STOXX 600.
UK’s FTSE 100 outpaced regional peers, rising 1.4% to a two-week high as London investors returned after a public holiday on Monday.
Real-estate stocks jumped 1.4% in early trade, while yields across the euro zone edged lower. [GVD/EUR]
Bucking the trend, Danish stocks eased 0.2% as shares of Novo Nordisk (NYSE:NVO), Europe’s second-largest listed firm, slipped 0.7%.
On the data front, a survey showed German consumer sentiment is expected to fall in September.
The STOXX 600 is still set to log monthly losses of nearly 3%, led by falls in basic resources on elevated bond yields and a worsening economic outlook for the euro zone and top export market China.
Investors would be keenly awaiting economic data across the world this week, with inflation readings due from the euro zone, France, and Germany, and jobs data due from the United States.
Among individual stocks, Telecom Italia (BIT:TLIT) (TIM) (MI:TLIT) edged 0.4% higher after Milan approved two decrees providing for the economy ministry to take a stake of up to 20% in the phone group’s landline grid. Vivendi (OTC:VIVHY), TIM’s top investor, added 0.8%.
Encavis added 2.3% after Jefferies upgraded the German wind and solar park operator to “buy”.
Bunzl (OTC:BZLFY) advanced 3.4% after the British business supplies distributor hiked its annual adjusted operating profit forecast.
Source Courtesy: Reuters/Investing.com