Investing.com - The European basic resource sector soared in midday trade on Monday, as a trade ceasefire between the U.S. and China sparked demand for growth-linked assets.
The pan-European Stoxx 600 Basic Resources Index, with its heavy exposure to China, shot up around 5% by 6:40AM ET (1140GMT), on track for its best day in more than two years.
Fears over a full-blown trade war eased after the U.S. and China, the world's two largest economies, agreed to a 90-day ceasefire in their longstanding trade dispute.
The announcement came after U.S. President Donald Trump and Chinese President Xi Jinping sat down with their aides for a working dinner at the end of the G20 summit in Argentina on Saturday.
Mining heavyweights BHP Billiton (LON:BHPB) and Rio Tinto (LON:RIO) were both trading more than 5% higher on the news.
Copper producers such as Antofagasta PLC (LON:ANTO) and Anglo American (LON:AAL) also contributed to the upbeat performance for the sector, with their stocks gaining 8% and 6.5% respectively.
Tensions between the two economic superpowers have dominated headlines for most of the year, with both sides imposing tit-for-tat tariffs on each other's products. The standoff had raised fears among investors that the global economy could be dragged down by the dispute.