UPDATE 2-European shares finish larger as commodities majors write off losses

* STOXX 600 recovers preliminary losses

* HelloFresh releases the STOXX 600

* Miners earn as base metallic costs stabilize (updates at market shut)

By Sruthi Shankar and Ambar Warrick

March 2 (Reuters) – The European benchmark inventory index edged up on Tuesday as a steady bond market gave equities some leeway, with main commodity-related shares reversing losses as a result of a reversal in costs. oil and metallic costs.

The pan-regional STOXX 600 index rose 0.2% after marking its greatest day in practically 4 months on Monday, with mining shares among the many prime gainers as copper costs stabilized close to their highs of 10 years.

Oil shares additionally decreased a lot of the day’s losses after oil costs stabilized forward of an OPEC + assembly, the place producers are anticipated to ease provide restrictions to feed rising demand on a gradual financial restoration.

European shares pulled again from their one-year highs in February amid a spike in bond yields, with buyers anxious {that a} potential rise in inflation from world stimulus measures might spur central banks to tighten their financial coverage.

Nevertheless, a number of European Central Financial institution officers mentioned this week that the financial institution would stop a untimely enhance in borrowing prices, together with utilizing the pliability constructed into its bond buy program.

“After we have a look at western markets we do not anticipate fee strikes, which is why I am comfy with rising yields,” mentioned Lewis Grant, senior portfolio supervisor at Federated Hermes in London.

“We’ve to acknowledge that returns are transferring as a result of optimism concerning the reopening, and that is a very good factor for shares.”

Eurozone inflation was additionally steady in February, marking a pause in what is predicted to be a brief however sharp spike in shopper costs within the coming months, as different economies reopen.

“Non permanent components are driving the speed up proper now … we anticipate excessive ranges of inflation in 2021 to be largely transient and decrease inflation to return in 2022,” analysts mentioned. of ING.

Amongst particular person movers, Swiss chocolate maker Lindt & Spruengli jumped 3.3% after saying it was aiming for natural gross sales progress of 6% to eight% this yr due to pent-up demand after the pandemic hit its markets. actions.

German distant connectivity software program firm TeamViewer rose 4.2% after asserting it acquired Upskill, a US firm specializing in augmented actuality purposes for frontline staff.

French yogurt maker Danone misplaced practically 2% as buyers questioned whether or not a latest cut up in his position as chairman and chief government would give a brand new CEO some leeway.

HelloFresh hit the underside of the STOXX 600 because the German meal equipment supply firm mentioned it expects most of its markets to normalize in 2021, following a growth within the earlier yr. (Reporting by Sruthi Shankar in Bengaluru; Enhancing by Anil D’Silva and Lisa Shumaker)

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