European stocks rise as rebound continues, while mining stocks react to fall in commodity prices
European equities rose on Friday, as the rebound continues from a selloff caused by inflation fears, with mining stocks being the major drag on stock-market indexes in Europe after a slight fall in commodity prices.
The pan-European Stoxx 600 SXXP,
Dow industrials futures YM00,
European equities are rebounding from days of declines since the beginning of the week, largely driven by U.S. inflation fears, with the Stoxx 600 now just 1.5% below the record high hit on Monday, before the selloff.
Wall Street enjoyed a strong rebound on Thursday, reversing a near 4% fall on the S&P 500 SPX,
“Technology stocks remain under pressure, but investors are turning to value stocks, which helped the broader market to recover,” said Milan Cutkovic, an analyst at Axi. “The fact that Europe’s stock indices are not dominated by technology stocks turned out to be an advantage in the current market environment.”
In the day ahead, investors will closely watch U.S. retail sales figures for April, which will provide more insight into consumer spending as the world’s largest economy reopens. In Europe, the European Central Bank will release the minutes from its April meeting.
Accompanying the rally in stocks was a fall in commodity prices late on Thursday. Benchmark Brent BRN00,
The London-listed mining giants added drag to the FTSE 100, with nonenergy minerals the weakest sector in the CAC 40 as well. Shares in Rio Tinto RIO,
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Shares in U.K. enterprise software group Sage SGE,
Sportswear giant Adidas ADS,
Shares in Sanne SNN,
European food-delivery group Delivery Hero DHER,
Shares in French foods group Danone BN,