PARIS: European shares extended gains for a fifth straight session on Tuesday, buoyed by defensive sectors and miners, although concerns over a potential recession limited further upside.
The continent-wide STOXX 600 index inched up 0.2%, hitting a fresh 10-week high after recouping much of its June losses this week.
Miners jumped 3.2% to lead gains, lifted by a 5.5% surge in London-listed global miner BHP Group after stellar results.
Telecoms and utilities - sectors seen as safer bets during economic uncertainty - also advanced.
“A lot of this (rally) is running on technicals and momentum, but the fundamentals haven’t changed,” said Seema Shah, chief strategist at Principal Global Investors.
“The economic outlook for Europe is very negative. As we start to see recession come through and some of the hard economic data begins to deteriorate, that’s when you could see European equities deteriorate.” German investor sentiment fell slightly in August on concerns the rising cost of living will hit private consumption, and suggesting Europe’s largest economy is tipping into recession.
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