European stocks kick off June in rally mode as commodities climb

European stocks kick off June in rally mode as commodities climb

European stocks started June with strong gains, lifting a key regional barometer to a new high, as commodities prices rallied on hopes the global economic recovery will continue gathering pace.

The European Stoxx 600 index rallied 1 per cent in morning trading, reaching a record high. Shares in miners and energy companies led the way in Europe on Tuesday, as the price of global oil benchmark Brent reached its highest level since March.

Tuesday's gains were broad, however, with other economically sensitive sectors such as automakers, industrials and banks also rising.

Germany's Dax index rose 1.2 per cent, driven by investor confidence about accelerating vaccine rollouts and economic reopenings, while France's Cac 40 index climbed 0.8 per cent. London's FTSE 100, which is relatively heavily weighted towards commodities companies, gained 1.3 per cent.

Brent crude, the global benchmark for oil, rose more than 2 per cent on Tuesday to $70.69 a barrel. West Texas Intermediate, the US benchmark, rose 2.7 per cent to $68 a barrel, hitting levels not seen since 2018.

A survey of factory executives in China, the world's biggest emerging market, released on Tuesday was the latest sign that the global economic recovery was gaining speed.

The Caixin manufacturing purchasing manager's index reached