Portfolio

Europe close: Stocks end off best levels, miners pace gains

By Alexander Bueso

Date: Tuesday 28 Jun 2022

Europe close: Stocks end off best levels, miners pace gains

(Sharecast News) - European stocks were uniformly higher on Tuesday but ended the session off their best levels of the day as early gains on Wall Street evaporated.
Lifting investor sentiment in the stock market however, Asian shares rallied overnight after China halved its quarantine period for overseas visitors to seven days, with a further three days spent at home.

Against that backdrop, the pan-European Stoxx 600 gained 0.27% to 416.19, with all major bourses in positive territory.

Germany's Dax edged up 0.35% to 13,231.82, while the FTSE Mib added 0.79% to 22,101.23.

"Perhaps investors are getting carried away with a very modest easing of restrictions but the policy is a big potential headwind for the global economy so any loosening will be celebrated," said Craig Erlam, senior market analyst at Oanda.

"Of course, these are extremely anxious times in the markets so the celebrations didn't last very long. And that will be even more evident from tomorrow when the economic data ramps up and we hear from the heads of the Fed, ECB and BoE at the Forum on Central Banking in Portugal."

Euro/dollar fell 0.6% to 1.0520 after European Central Bank chief, Christine Lagarde, said the monetary authority would tighten policy in a gradual fashion.

In other news, the Group of Seven summit in Germany will conclude today after leaders said they would support Ukraine in its defence of the country from Russia for "as long as it takes."

Monthly gauges of German and French consumer confidence came in mixed but at "depressed" levels, according to Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics, who added that there was "no relief in sight".

In equity news, miners were higher on stronger commodities prices and hopes of an economic rebound in China. BHP, Anglo American, Glencore and Rio Tinto all made gains.

Shares in French car parts maker Faurecia rose 3% after an upgrade to 'buy' from 'hold' from Jefferies.

On the downside, UK water utility Pennon Group dropped 6% after the industry regulator opened an enforcement case against the company. Sector peer Severn Trent also fell sharply on the news.

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