European stocks rally cautiously thanks to miners and encouraging results

European stocks rally cautiously thanks to miners and encouraging results

European stocks rose on Monday after five straight weeks of declines, as gains in mining stocks and encouraging results offset concerns about an impending monetary policy tightening cycle and geopolitical tension.

* The pan-European STOXX 600 index gained 0.7% after sinking more than 5% so far this year, following sharp falls in tech stocks as inflationary pressures gave way to harsh comments from major central banks.

* Mining stocks were the best performers on the day, rising 1.7%, after positive comments from top commodity importer China pushed metal prices higher.

* “(The European Central Bank) may, after all, decide to raise rates in 2022. Earlier comments by ( ECB President Christine) Lagarde and her colleagues highlighted no rate hikes this year, but now that door is open. open,” said Charalambos Pissouros of JFD Group.

* Still, Lagarde said on Monday inflation pressures could ease before they take hold of expectations, negating the need for a drastic change in monetary policy. His comments contrasted with his stance last week, when he opened the door to potential rate hikes.

* The benchmark index of Italian stocks fell sharply, down 1%.

*Among individual stocks, Aurubis AG, Europe’s largest copper producer, improved 3.2% after confirming an 85% rise in quarterly profit and reiterating full-year earnings estimates on the strength of prices. metal prices and production.

* Shares of French nursing home company Korian fell on Monday after a Paris lawyer said she is preparing a class action lawsuit against the company over complaints of malpractice at the firm’s premises.

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