Commodities-related stocks help European equities to rebound

Oct 18 European shares bounced back early on Tuesday, with commodities-related stocks leading the market higher after prices of major industrial metals and crude oil rose on a softer dollar.

The pan-European STOXX 600 index rose 1.1 percent.

The STOXX Europe 600 Basic Resources index rose 2 percent, the top sector gainer, as copper prices gained after the dollar eased from seven-month highs. Other metals, including gold, also rose as a weaker dollar made commodities cheaper for other currency holders.

The European oil and gas index also advanced 1.4 percent on the currency moves and as some analysts said markets might not be quite as oversupplied as suggested by many, with global inventories rising less than expected.

Shares in Rio Tinto, Randgold Resources, Fresnillo, Royal Dutch Shell and BP rose 1.2 to 2.2 percent.

On the downside, shares in French testing, inspection and certification company Bureau Veritas fell 4.5 percent after the company cut its outlook for full year 2024 as the weakness in the oil and & gas and shipping markets weighed on its revenue.