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European shares rise in early trade; resources lead

Published 02/04/2020, 03:25 AM
Updated 02/04/2020, 03:31 AM
European shares rise in early trade; resources lead
DE40
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STOXX
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SXPP
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(Reuters) - European shares opened higher on Tuesday, extending their recovery from a sharp selloff last week that was driven by concerns over a virus outbreak in China, with the basic resources sector leading gains.

The pan-European STOXX 600 index (STOXX) rose 0.6% by 0803 GMT, having ticked up slightly on Monday after logging its worst week in six months.

Stock markets in Asia, particularly in China, gained after steep falls on Monday, although headlines about the coronavirus outbreak are expected to sway markets in the near term.

The basic resources sector (SXPP), which consists of several China-focused miners, was the best performer among EU regional subindexes, adding about 1.5%.

German stocks (GDAXI) rose about 0.7% after data on Monday pointed to some recovery in the beleaguered manufacturing sector. However, an economic slowdown in China is likely to add more pressure.

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