European shares rebound after four-day losing streak

Higher commodity prices offset fears around Covid-19 surge

Photograph: iStock

Photograph: iStock

 

European shares rebounded on Wednesday after a four-day losing streak, as higher commodity prices helped offset fears around Europe’s worsening Covid-19 situation and prospects of severe restrictions dampened the economic outlook.

The pan-European Stoxx 600 climbed 0.5 per cent by 0825 GMT after recording their worst session in nearly two months on Tuesday amid a resurgence in coronavirus cases and fears of rising interest rates.

Oil stocks rose 0.9 per cent, with crude prices inching higher as investors remained sceptical about the effectiveness of a US-led release of oil from strategic reserves.

Miners gained 1.2 per cent, tracking higher copper prices due to easing concerns over Chinese demand.

Telecom Italia jumped 8.3 per cent following news reports that KKR is considering boosting its offer for the company after its top investor Vivendi called the initial one too low. French catering company Elior Group rose 2.6 per cent after announcing new targets for its next fiscal year and posting its best quarter since the pandemic began.

AutoStore added 5 per cent after the Norwegian robotics company posted a 95 per cent surge in third-quarter revenue. – Reuters