FRANKFURT: European stocks were little changed amid a rally in miners and energy companies as China’s central bank pledged to support the economy.
The Stoxx Europe 600 Index gained less than 0.1 percent at the close of trading in London, erasing a decline of as much as 0.7 percent, as a rise in commodities and oil sent their producers up the most among industry groups. The volume of Stoxx 600 shares changing hands was almost 45 percent lower than the 30-day average as German and Swiss markets were among those shut for a holiday.
“The resources and oil sectors have been outperforming since the February low,” said Jasper Lawler, a London-based analyst at CMC Markets Plc. “But they need to continue to outperform for us to have a sustained rally.”
While European shares rose last week for the first time in three, they’ve been stalling since April 20, after the Stoxx 600 staged an almost 16 percent rally from its February low. Concerns about the health of the global economy and central-bank policy resurfaced as companies reported mixed earnings. The equity gauge closed 4.6 percent below the April high.
On Monday, oil climbed with metals, helping send shares of commodity-related companies higher — Anglo American Plc and Tullow Oil Plc gained more than 5 percent.
Among companies rising on corporate news, Konecranes Oyj surged 18 percent after the Finnish construction-machinery maker agreed to acquire a Terex Corp. lifting-gear business, abandoning a full merger. Telecom Italia SpA climbed 3 percent after almost tripling its target for reducing expenses to 1.6 billion euros ($1.8 billion) by 2018.
Eutelsat Communications SA dropped another 6.8 percent, after tumbling a record 28 percent on Friday following its earnings report, as Morgan Stanley lowered its rating on the French satellite operator to the equivalent of a sell. It closed at its lowest price since August 2009.
