European stocks touch peaks after China eases Covid-19 restrictions

European shares closed at two-week highs on Monday (27), boosted by the mining sector as the easing of restrictions against Covid-19 in China improved global sentiment.

Prosus shares advanced in the face of the Dutch company’s plans to reduce its stake in Tencent. The pan-European STOXX 600 index closed up 0.52% at 415.09 points but fell from session highs after Wall Street returned early gains and struggled to find direction as investors took profits.

Beijing and Shanghai eased further restrictions against Covid-19. Shanghai declared victory over the spread of the disease, which eased some concerns about impacts on growth in the world’s second-largest economy.

“The good news from China is good news for everyone because it can ease pressure on supply chains and help ease inflation problems,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank.

Mining stocks jumped 1.8% to lead gains across sectors, while industrials and healthcare provided the biggest boosts to the pan-regional index.

Prosus NV jumped 15.7% after the tech investor said it will gradually sell off its 28.9% stake in Chinese software giant Tencent, which equates to more than $100 billion at current prices. The company also announced a share buyback.

• In London, the Financial Times index advanced 0.69%, to 7,258.32 points;
• In Frankfurt, the DAX index rose 0.52% to 13,186.07 points;
• In Paris, the CAC-40 index lost 0.43% to 6,047.31 points;
• In Milan, the Ftse/Mib index had a devaluation of 0.86%, to 21,928.81 points;
• In Madrid, the Ibex-35 index registered a drop of 0.02%, to 8,242.60 points;
• In Lisbon, the PSI20 index rose by 0.41%, to 6,054.94 points.