European stocks demonstrated their strength on Tuesday. They rose to their highest in more than a week boosted by a strong rebound in technology shares as worries regarding the Omicron coronavirus variant ebbed, as well as gains in the mining sector after China eased its monetary policy.
The pan-European STOXX 600 index dropped 1.8% to bounce backs to levels before November 26. On that day, the index suffered its biggest selloff in 2021 on worries about the virus variant.
Technology stocks gained 3.9% after hitting seven-week lows one day earlier amid a wider selloff in high growth names.
The continent-wide STOXX 600 is now hovering around 5% below its record high from mid-November. The Euro STOXX 50 volatility index dropped to 25.6.
Mining stocks gained 3.7% on Tuesday after China’s central bank reduced the amount of cash banks must hold in reserve. Metal prices increased in hopes of an economic boost to the world’s top metal consumer.
Stocks on Tuesday
When it came to individual stocks, British American Tobacco advanced 2% after backing its full-year forecast thanks to one factor. More and more people are buying the tobacco giant’s vaping and oral nicotine products.
Automaker Stellantis gained 1.7% on plans to generate around 4 billion euros ($4.52 billion) by 2026. In fact, the company plans to generate about 20 billion euros by 2030 from software offerings.
Telecom Italia advanced 1.3% after picking Goldman Sachs and LionTree to advise the country’s biggest telecom group on the takeover bid by U.S. fund giant KKR.
Payment firm Worldline gained 1.3% after Eurobank agreed to sell 80% of its merchant acquiring business to Worldline. One of Greece’s four largest lenders wants to strengthen its capital base.
Defensive sectors such as telecoms, utilities, as well as food & beverages were among the smallest gainers.
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