LONDON (Reuters) - European shares rose on Wednesday as gains by mining companies helped stock markets to recover further from their losses earlier in the year.
The pan-European FTSEurofirst 300 index .FTEU3, which had risen in the last four sessions, advanced 0.7 percent. The euro zone's Euro STOXX 50 index .STOXX50E and Germany's DAX .GDAXI also both rose 0.9 percent.
World stock markets slumped at the start of 2016 on concern about a slowdown in China, the world’s second-biggest economy and a leading consumer of oil and metals. The FTSEurofirst is still down 7 percent since the start of 2016.
But China announced this week it would cut bank reserve requirements and make other structural reforms. That helped real estate prices climb, and Chinese stocks advanced on Wednesday even though Moody’s cut its outlook on China..
Shares of mining companies rose in response .SXPP on Wednesday, and copper prices also climbed [MET/L]. Anglo American (AAL.L) advanced 5 percent and steelmaker ArcelorMittal ISPA.AS 4 percent.
“We do appear to have turned a corner on European markets,” said Hantec Markets’ analyst Richard Perry. Others were more cautious, pointing to underlying signs of weakness in the global economy.
Eyewear maker Luxottica LUX.MI fell 5.4 percent after trimming its outlook. Medical technology group Elekta (EKTAb.ST) slumped 12.3 percent after posting core earnings that missed market forecasts.
“I’d be looking to sell out on rallies such as this,” said Mirabaud Securities’ Rupert Baker.
Editing by Larry King