Europe’s main stock markets gained on Monday as rising metals prices boosted the share prices of major mining companies, dealers said.
In late morning trade, London’s benchmark FTSE 100 index gained 0.18 percent to 5,713.26 points, Frankfurt’s DAX 30 won 0.74 percent to 6,164.98 points and the Paris CAC 40 added 0.43 percent to 4,006.03.
The Stoxx 50 index of top eurozone shares increased by 0.41 percent to 2,952.92 points.
In foreign exchange trade, the euro strengthened against the dollar as the single currency won further support from last week’s deal by European leaders to rescue Greece from its debt crisis, dealers said.
“Equities in Europe climbed in early trade on Monday as investors capitalised on stronger commodity prices to push Europe’s benchmark indices higher,” said analyst Joshua Raymond at financial spread-better City Index.
“The key to today’s gains has been the mining sector. Copper and gold prices have been driven higher thanks to the weaker US dollar.”
The falling dollar makes dollar-priced commodities cheaper for buyers using stronger currencies, and tends to stimulate demand and lift prices.
“This has helped to entice buyers into the mining sector today, which is the standout gainer so far and the main engine behind today’s gains,” added Raymond.
Among the miners in London, Antofagasta added 1.48 percent, Kazakhmys rose 1.11 percent and Xstrata won 2.85 percent.
European markets were also bolstered after a key European Union survey of business and consumer sentiment showed Monday that confidence across the 16 eurozone economies showed a solid March rebound after a February blip.
“The upward trend appears to have regained its momentum,” the European Commission said as it unveiled a rise of 1.8 points to 97.7 points in its eurozone Economic Sentiment Indicator for March.
After EU leaders moved to address eurozone fears over financial market fallout from massive Greek public debts, the latest data showed the ESI back close to its long-term average, albeit short of the pre-crisis level.
In earlier Asian deals on Monday, strong Chinese corporate earnings boosted stock markets, with many dealers in wait-and-see mode ahead of key economic data from the United States and Japan.
Hong Kong gained 0.88 percent, Shanghai rallied 2.09 percent while Tokyo flattened.
Before the weekend, Wall Street closed mixed on Friday as the market weighed the Greece rescue plan and news of possible tensions in the Korean peninsula.
The Dow Jones Industrial Average gained 0.08 percent, a day after the market suffered a late sell-off due to eurozone debt jitters.
