Basic resource shares led gains among the 19 industry groups in the Stoxx 600 as copper advanced for a third day in London.
Stocks in Europe surged on Tuesday, led by strength in the commodity space, as investors shrugged off the recent downbeat economic reports and snapped up beaten down shares amid hope that the earnings outlook still remains strong.
The Stoxx 600 index climbed 1.9% to 241.07 at 10:39 a.m. in London, the biggest gain in almost a month. The European benchmark had fallen for five straight days to the lowest level since May 25.
Basic resource shares led gains among the 19 industry groups in the Stoxx 600 as copper advanced for a third day in London.
On Monday, the Stoxx 600 index closed down 0.3%, its lowest level since May 25.
The French CAC-40 index rallied 3.1% to 3,434.79, while that UK's FTSE 100 index jumped 2.2% to 4,930.19 and the German DAX index rose 2.2% to 5,942.49.
Shares of the beleaguered UK oil major BP rose for the second day running after RBS upgraded the shares to “buy” from “hold,” saying that the pessimistic view on the probable costs of the Macondo spill is currently discounted in the share price.
EasyJet gained 1.9% after Europe’s second-biggest discount airline said that its passenger numbers rose 9.4% to 4.5 million in June.
Tullow Oil shares were up after the company said that first-half working interest production averaged 55,800 barrels of oil equivalent per day and is expected to average between 56,000 and 57,000 for the full year, in line with expectations.
Asian shares closed broadly higher today, paced by a smart turnaround in Chinese stocks. The MSCI Asia Pacific Index rose 1.4% today.
Futures on the S&P 500 expiring in September climbed 1.3% to 1,027.1 as of 11:36 a.m. in London. The S&P 500 fell every day last week and didn’t trade yesterday because of the Independence Day holiday. Dow Jones Industrial Average futures gained 1.1% to 9,702, while Nasdaq-100 Index futures increased 1.6% to 1,748.
In the currency markets, the euro gained 0.26% to 1.2570 and the sterling climbed 0.5% to US$1.5183 against the dollar.
The yen and the dollar declined against the euro following the rebound in global stocks, reducing the currencies' appeal as safe havens.
The Australian dollar rose against all of its 16 most actively traded rivals as the nation’s central bank held interest rates steady and said that business investment is set to expand.
