European Equities Advance on Boost From Energy, Mining Shares

(Bloomberg) -- European stocks rose on Wednesday, lifted by gains for miners and energy shares, while investors also focused on virus-relief aid discussions in the U.S.

The Stoxx Europe 600 Index closed up 0.5%, with a report showing euro-area economic activity picked up in July. Miners jumped 4% as most metal prices gained. Energy shares outperformed as oil jumped to a five-month high after U.S. industry data revealed a decline in stockpiles.

Earnings were also in focus. Royal Ahold Delhaize NV rose 5.3% after the supermarket operator raised its 2020 earnings forecast thanks to a boom in e-commerce. BMW AG dropped 3.5% after reporting its first quarterly loss since 2009. Elsewhere Commerzbank AG cut its outlook, hit by a rise in bad loan provisions.

A recovery in European equities has lost some steam in August as investors keep a close eye both on corporate results and economic data to gauge the impact of the pandemic.

“I worry that the pace of recovery that’s implied by financial markets today is perhaps higher than we may see,” Terry Ewing, head of equities at Mediolanum International Funds, said by phone. “For that reason, we’re taking a slightly cautious view here overall.”

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