Europe open: Shares make positive start as miners gain
European stocks started higher on Tuesday, with miners on the rise driven by strong metal and oil prices.
The pan-European STOXX 600 index gained 0.5%, just below last week’s record high. Most major regional bourses were in positive territory, with the UK’s FTSE 100 up 0.37% after Monday’s public holiday.
Investors were also eyeing IHS Markit’s factory activity data for the euro zone and UK, as well as consumer prices data for May.
“A shortened trading week on both sides of the pond will see further focus on inflationary pressures and whether the global recovery is becoming entrenched,” said interactive investor head of markets Richard Hunter.
“In the US, non-farm payrolls on Friday follow on from an expectedly weak reading of 266000 in April, with the consensus being that 650000 jobs will have been added. Another disappointing number would lessen some of the pressure on the Federal Reserve to wind down its stimulus programme.”
In equity news, miners were on the rise, with Anglo American, BHP, Rio Tinto and Glencore all up on the back of higher commodity prices.
BP, Royal Dutch Shell and Total also gained as Brent crude futures topped $70 per barrel on growing optimism over fuel demand outlook.