European equities closed at a year high supported by commodity gains

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European equities closed at a year high supported by commodity gains

Reuters

European equities closed at a year high supported by commodity gains

European shares closed Monday at their highest level in nearly a year.

Major resource stocks benefited from expectations of a rapid economic recovery, while Vivendi shares led the gains thanks to its plan to distribute the capital of Universal Music.

The European “STOXX 600” index rose 1.3 percent to its highest level since late February 2020, with the support of “Rio Tinto, BHP Group” and “Anglo American”, while copper prices jumped to their highest level in more than eight years.

Banking and energy stocks also rose, as the so-called “recovery trade” increased demand for sectors that underperformed the broader index after the crash that occurred in early 2020 due to the Coronavirus.

Minerals and oil prices rose as investors bet on new US stimulus and major vaccine programs that boosted the return of demand for basic commodities.

Source: Reuters





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