Dec 07, 2021 05:20AM ET
By: AnalysisWatch
European stocks rose to their most significant level in over seven days on Tuesday, helped by a solid bounce back in innovation shares after stresses over the Omicron Covid facilitated and gains in the mining area after China facilitated its financial arrangement.
The continent-wide STOXX 600 index rose 1.8%, returning to levels seen before November 26, when the index suffered its biggest sell-off of the year on concerns about the new virus variant.
Technology stocks rose 3.9% after hitting a seven-week low on Monday amid a broader sell-off in high-growth stocks.
The STOXX 600 is now about 5% below its record high in mid-November, while the Euro STOXX 50 Volatility Index, Europe's fear gauge, fell to 25.6. At the height of the market sell-off, it was 33.1.
Mining stocks jumped 3.7% after China's central bank cut the amount of cash reserves banks must hold, driving up metal prices in hopes of an economic rebound for the world's biggest metal consumer.
Among individual stocks, British American Tobacco rose 2% after the company reaffirmed its full-year guidance, driven by more people switching to the tobacco giant's vaping and oral nicotine products.
Carmaker Stellantis rose 1.7% as it plans to earn about €4 billion ($4.52 billion) from software offerings by 2026 and about €20 billion by 2030.
French payments firm Worldline rose 1.1% after Eurobank, one of Greece's four biggest lenders, agreed to sell 80% of its acquiring business to the French payments company to strengthen its capital base. The Eurobank increased by 1.5%.
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