LONDON/MILAN: European stocks benchmark fell on Tuesday after recording its strongest session in four months a day earlier as heavyweight mining and energy stocks retreated on weaker commodity prices. The pan-regional STOXX 600 index fell 0.2%, following Asian markets into the red after China’s top banking and insurance regulator expressed caution about the risk of asset bubbles in foreign markets.
Oil majors Royal Dutch Shell, BP and Total fell between 1.3% and 2.4% as crude prices dropped on worries about slowing demand in China. The oil and gas sector fell 1.5%, while miners declined 0.4%. European shares have pulled back from February peak with a rise in bond yields as investors fear that a potential rise in inflation due to global stimulus measures could prompt central banks to tighten monetary policies.
Gains in shares of consumer companies such as Nestle, Unilever and Reckitt Benckiser helped limit losses in Europe. Swiss chocolate maker Lindt & Spruengli jumped 3.3% after saying that it aimed for 6% to 8% organic sales growth this year thanks to pent-up demand after the pandemic hit its business.
German remote connectivity software company TeamViewer rose 3.6% after it said it had acquired Upskill, a US company that specialises in augmented reality applications for front-line workers. Britain’s third-largest homebuilder Taylor Wimpey rose 2.3% after it said the 2021 selling season has started well and that it resumed dividend payment as promised.
Among decliners, HelloFresh shares, which have more than doubled in the past year, fell 4.1% even as the German meal-kit delivery company reported fourth-quarter sales above market expectations.
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