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Markets

European stocks rebound as miners, autos rise

  • The pan-European STOXX 600 index gained 0.5% by 0716 GMT. The benchmark broke a three-day winning streak on Tuesday
Published July 7, 2021

European stocks gained on Wednesday as economically sensitive sectors such as miners and automakers recovered from sharp falls in the previous session, triggered by falling bond yields.

The pan-European STOXX 600 index gained 0.5% by 0716 GMT. The benchmark broke a three-day winning streak on Tuesday on the back of a sharp drop in US and euro zone bond yields due to concerns about global economic recovery.

Miners, oil & gas companies and automakers , which bore the brunt of Tuesday's sell-off, rose between 1.0% and 1.3%.

European shares drop

UK-listed oil major Royal Dutch Shell rose 2.7% after it said it would boost its returns to shareholders via share buybacks or dividends.

German software company SAP was up 2.7%, with traders pointing to a double upgrade to "buy" from Bank of America as the reason for the move.

Investors are awaiting the US Federal Reserve's policy minutes later in the day, which could shed light on its plan to taper asset purchases.

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