European shares rise on mining boost; investors eye Middle East conflict

Image courtesy: DANIEL ROLAND/ Getty Images

European shares climbed on Monday, with miners in the lead on optimism around demand from top consumer China, although trading was cautious as investors weighed prospects of an escalation in the Middle East conflict.

The European mining index rose 1.3 per cent as prices of base metals were lifted by hopes of stronger demand from China after data last week signalled some signs of stabilisation in the world’s second-largest economy.

Also boosting the index was a nearly 4 per cent gain in shares of SSAB after JP Morgan upgraded the Swedish steel company to “overweight” from “neutral”.

Global risk sentiment was still on shaky grounds over concerns that the Israel-Hamas conflict would spill over to the broader region, gaining steam after Iran warned Israel of escalation.

Among other single European stocks, Frankfurt-listed shares of BioNTech fell nearly 5 per cent after partner Pfizer on Friday slashed its full-year revenue forecast on lower sales of its Covid-19 vaccine and treatment.

Read: Global market reaction to a week of the Israel-Gaza crisis