LONDON, Jan 5 — European stocks advanced, recovering some of the session’s earlier gains, after yesterday’s worst-ever start to a year.
Commodity producers tracked metal prices higher, posting the biggest gains among Stoxx Europe 600 Index groups. Glencore Plc and ArcelorMittal added at least 4.6 per cent, helping send the regional benchmark up 0.6 per cent at 2:14pm in London. It rallied as much as 1.1 per cent in the first 10 minutes of trading, before heading lower in the next few hours, falling as much as 0.5 per cent at one point.
The Stoxx 600 tumbled 2.5 per cent yesterday as a selloff in China reignited concern that a slowdown there will hamper global recovery. A gauge of miners advanced 2.8 per cent today, rebounding from their biggest drop in almost four weeks.
“It’s just buying the dip,” said John Plassard, senior equity-sales trader at Mirabaud Securities LLP in Geneva. “There’s a rebound in commodity companies. They were hammered so much yesterday that people are looking for opportunities.”
Among shares active on corporate news, Home Retail Group Plc surged 38 per cent after J Sainsbury Plc said it approached the company regarding a possible offer and was rejected. Sainsbury fell 5.1 per cent after rising 8.1 per cent immediately after the announcement.
Numericable-SFR SAS Altice NV jumped at least 7.8 per cent after Orange SA confirmed preliminary merger talks with Bouygues SA over its telecommunications unit.
Volkswagen AG fell 2.9 per cent after the US Justice Department sued the German automaker, accusing it of installing illegal devices in vehicles to defeat emission tests. Porsche Automobil Holding AG slid 2.1 per cent.
Next Plc fell 5.2 per cent after posting Christmas sales that missed estimates and forecasting full-year profit near the lower end of its range. — Bloomberg
