European shares close higher with China, oil high on radar

European shares rose on Tuesday as risk appetite improved after China eased its mandatory Covid-19 lockdown, while a rise in oil prices provided a further boost to energy stocks.

The pan-European STOXX 600 index rose 0.27% to 416.19 points, up for the third straight session. The benchmark’s gains were tempered after a drop in US consumer confidence in June that pushed Wall Street lower.

Europe’s oil and gas sector gained 2% as major producers in Saudi Arabia and the United Arab Emirates are unlikely to be able to significantly increase production.

In China, health officials said the country would halve its Covid-19 quarantine period for visitors from abroad to seven days, with another three days at home.

This was the latest decision in a series of gradual easing of restrictions against Covid-19 that began to hit the country’s economy and bolstered hopes of a pick-up in demand from China, the world’s second-largest economy and the biggest consumer of metals. .

The basic materials index rose 1.2% as iron ore and base metals appreciated.

• In London, the Financial Times index advanced 0.90%, to 7,323.41 points;
• In Frankfurt, the DAX index rose 0.35% to 13,231.82 points;
• In Paris, the CAC-40 index gained 0.64% to 6,086.02 points;
• In Milan, the Ftse/Mib index appreciated by 0.79%, at 22,101.23 points;
• In Madrid, the Ibex-35 index registered an increase of 0.91%, to 8,317.50 points;
• In Lisbon, the PSI20 index rose by 1.94%, to 6,172.51 points.