Oil, mining stocks help European shares rebound from losing run

Oil, mining stocks help European shares rebound from losing run

European shares rebounded on Wednesday after a four-day losing streak, as higher commodity prices helped offset fears around Europe's worsening COVID-19 situation and the prospect of severe restrictions. The pan-European STOXX 600 index climbed 0.4% after recording its worst session in nearly two months on Tuesday amid a resurgence in coronavirus cases and fears of rising interest rates. Oil stocks rose 1.2%, set for their biggest jump in over a month, with crude prices inching higher as investors remained sceptical about the effectiveness of a U.S.-led release of oil from strategic reserves. Miners gained 0.8%, tracking higher copper prices on easing concerns over Chinese demand, while travel stocks .SXTP slid over 1% on prospects of harsher travel curbs. European stocks are on course for weekly losses, as the return of COVID-19 curbs, rate hike and inflation concerns sparked fears of a weaker economic growth outlook. "There's a two-way pull between macro concerns and what's happening bottoms-up in terms of corporate profits," said Nick Nelson, head of European equity strategy at UBS, adding that while the third quarter has been one of the decade's best reporting seasons for Europe, macro concerns such as a rise in U.S. bond yields and COVID-19