European shares up as yield plays recover, reflation rally pauses

LONDON: European shares climbed higher in early trading on Tuesday, helped by energy stocks tracking a rally in crude oil prices and bond-proxy sectors such as utilities rebounding following a slight drop in yields.

The benchmark STOXX 600 rose 0.3 per cent in early trades.

The oil and gas index rose 0.4 per cent after oil prices rose around 2 per cent on expectations of falling shale output and renewed optimism that OPEC will deliver on touted production cuts.


The European utilities index, which fell to a 3-year low in the previous session, rebounded around 2 per cent as euro zone government bond yields dropped across the board after a six-week sell-off.

Mining shares, among the best performers this year, fell sharply for a second session led by declines of about 5 per cent for Antofagasta and Anglo American. Glencore shares fell 4.4 per cent.

Shares in British asset manager Intermediate Capital Group rose 7.3 per cent, the top STOXX 600 gainer, after saying that its first half assets rose 2 per cent.