Title: Commodity stocks lead European shares higher on China COVID relief
Jun 28, 2022 03:38AM ET
European shares rose on Tuesday, led by gains in commodity-related stocks and automakers after China eased its quarantine mandate under COVID-19, while investors awaited ECB President Christine Lagarde's speech later in the day.
The STOXX 600 index across the continent was up 0.9 percent by 0714 GMT, rising for a third straight session amid easing concerns about central banks' aggressive policy steps to tame hot inflation.
Shares in oil, gas and mining companies in Europe rose 1.9% and 3.2%, respectively, as commodity prices rallied on hopes of a demand revival from China, the world's second-largest economy and a major metals consumer.
Health authorities said China would halve to seven days the quarantine period for overseas visitors, who will spend another three days at home, while Beijing and Shanghai reported no new local COVID-19 infections for the first time in months.
Luxury retailers LVMH and Richemont, which rely heavily on China for revenue, saw their shares rise 1.4 percent and 2.7 percent, respectively. France's CAC 40 index, packed with luxury names, added 1.4%.
Among other stocks, Valeo rose 3.1% after the French auto parts company signed a major contract with BMW for advanced driving assistance systems for the German automaker's upcoming electric vehicle platform.
ECB President Lagarde will speak at the ECB forum in Sintra, Portugal, at 08:00 GMT on Tuesday.