By Jack Denton
European equities rose on Friday, as the rebound continues from a selloff caused by inflation fears, with mining stocks being the major drag on stock-market indexes in Europe after a slight fall in commodity prices.
The pan-European Stoxx 600 /zigman2/quotes/210599654/delayed XX:SXXP -1.58% rose 1.19%, while in London the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -1.90% gained 1.15%. The CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -1.46% in Paris was 1.54% higher and Frankfurt’s DAX /zigman2/quotes/210597999/delayed DX:DAX -1.78% climbed 1.43%.
U.S. stocks were also up, with Dow industrials /zigman2/quotes/210598065/realtime DJIA -1.58% 290 points higher by midday after the index rallied 433 points on Thursday to close at 34,021.
European equities are rebounding from days of declines since the beginning of the week, largely driven by U.S. inflation fears, with the Stoxx 600 now just 0.6% below the record high hit on Monday, before the selloff.
Wall Street enjoyed a strong rebound on Thursday, reversing a near 4% fall on the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.31% index over the week, and Asian and European stocks are playing catch-up.
“Technology stocks remain under pressure, but investors are turning to value stocks, which helped the broader market to recover,” said Milan Cutkovic, an analyst at Axi. “The fact that Europe’s stock indices are not dominated by technology stocks turned out to be an advantage in the current market environment.”
In the day ahead, investors will closely watch U.S. retail sales figures for April, which will provide more insight into consumer spending as the world’s largest economy reopens. In Europe, the European Central Bank will release the minutes from its April meeting.
Accompanying the rally in stocks was a fall in commodity prices late on Thursday. Benchmark Brent crude fell from near $70 a barrel on Wednesday to below $67 on Thursday, with the price of oil now pushing above $68. Copper futures /zigman2/quotes/210054311/delayed HG00 -0.84% were down 1% and iron ore futures slipped 1.5%.
The London-listed mining giants added drag to the FTSE 100, with nonenergy minerals the weakest sector in the CAC 40 as well. Shares in Rio Tinto /zigman2/quotes/208934945/delayed UK:RIO -1.24% , BHP /zigman2/quotes/203323256/delayed UK:BHP -2.21% , and Antofagasta /zigman2/quotes/200173667/delayed UK:ANTO -1.90% fell, as all of those companies are major producers of copper or iron ore.
Shares in U.K. enterprise software group Sage /zigman2/quotes/204528931/delayed UK:SGE -1.14% rose 3.8%, after it posted half-year results with earnings per share ahead of analyst expectations. The group also guided that its margins would trend upward beyond 2021.
Sportswear giant Adidas /zigman2/quotes/206448829/delayed XE:ADS -1.63% was a standout in Germany, with the stock up 1.3%. The New York Post reported on Thursday that Authentic Brands and Wolverine World Wide — the footwear group behind Merrell and Hush Puppies — had made an offer of more than $1 billion to buy Reebok.
Shares in Sanne /zigman2/quotes/204110628/delayed UK:SNN -0.48% , a U.K. asset management services group and constituent of the midcap FTSE 250 /zigman2/quotes/210598417/delayed UK:MCX -0.94% index, soared 21% higher after its board rejected a £1.35 billion ($1.9 billion) buyout proposal from private-equity group Cinven.
European food-delivery group Delivery Hero /zigman2/quotes/208380525/delayed XE:DHER -0.96% saw its stock slide 1.8%, days after announcing that it would re-enter its competitive home market of Germany in June. Delivery Hero sold its German operations to rival Just Eat Takeaway /zigman2/quotes/201653805/delayed NL:TKWY -1.37% two years ago.