Europe close: Bargain-hunting investors push commodities higher

European investors made a last-ditch bid to get their hands on rising commodities stocks on Wednesday, ahead of the continent's Christmas shutdowns later this week.

The pan-European Stoxx Europe 600 index wiped the slate after Tuesday's 0.1% loss, gaining 2.67% during the day to close at 365.90. Not surprisingly, the day was led by the oil and gas and basic materials sectors, gaining 4.49% and 6.71% respectively.

Trading had been rough in the preceding days, with volumes trending lower due to the holiday period, and recent commodity jitters still lingering. The global gains of the last 24 hours, particularly with oil, showed many were convinced of a partial stabilisation, even if temporary.

Commodities, particularly oil and metals, had suffered a disastrous year price-wise, so many investors would have been hoping for a bargain on Wednesday.

"Hopes that Chinese stimulus measures could buoy the fortunes of natural resources stocks, combined with some elements of a short squeeze, have driven miners to the top of the board", said Trustnet Direct analyst Tony Cross in a note.

On the mining boards, ArcelorMittal was up 10.36% to €4.13, Anglo American surged 8.94% to 321.1p, Glencore managed to rise 8.96% to 93p, and Boliden pushed up 7.49% to SEK 147.40.

Energy shares were onto a winner as well, as crude prices gained solid ground - though they were still on track for annual losses of almost a third. London Brent was up 1.768% to $36.77 and West Texas Intermediate surged 2.771% to $37.17.

Repsol of Spain was up 6.7% to €10.70, Norwegian oil services firm Seadrill ticked up 4.72% to NOK 34.38, Statoil was looking at gains of 5.22% to NOK 124.90, and Tullow Oil finished the day up 10.12% to 177.2p.

Those commodities gains helped London through the day, with the FTSE 100 up 2.53% to 6,231.5. On the continent, the DAX 30 rose 2.25% to 10,715.03 and the CAC 40 tracked up 2.33% to 4,670.40. In Spain, the IBEX 35 leapt up 2.35% to 9,634.30.

The only European data releases for the day came out of France, where consumer spending dropped 1.1% in November. Analysts put the decline down to a drop in consumer confidence after the Paris attacks, with many choosing not to travel, shop or dine in the ensuing weeks.

Western Europe's unseasonably warm winter also weighed on the figures, with spending on energy plunging 5.6% in November, and clothing purchases down 4.7%.

France's public debt fell in the third quarter too, down €2.2bn to €2.1trn. The country's statistics agency, Insee, said that represented a debt load of 96.9% GDP, compared with 97.6% three months earlier.

In currencies, the euro fell 0.74% against the US dollar, to $1.0876, while the pound was up 0.32% to $1.4875.

Europe's markets will close for Christmas Day on Friday, and London will remain out of action on Monday 28 December for the Boxing Day bank holiday.