Commodity stocks lead European markets higher

European shares rose on Tuesday, boosted by gains in commodity-related stocks and automakers after China eased quarantine restrictions related to COVID-19.

The pan-European Stoxx 600 index rose 0.9 percent by 0714 GMT, rising for the third consecutive session, amid waning concerns about the central bank’s moves to tighten monetary policy in order to control rising inflation.

The oil and gas sectors in Europe rose 1.9 percent and 3.2 percent, respectively, as commodity prices increased, supported by hopes for a recovery in demand in China, the world’s second-largest economy and the largest consumer of metals.

The health authorities said that China will reduce the quarantine period related to COVID-19 to seven days for those coming from abroad, with another three days spent at home, while Beijing and Shanghai did not record any new local infections with the Coronavirus for the first time in months.

Shares in Louis Vuitton and Richmond Luxury Goods, which rely on China for a large part of their revenue, rose 1.4 percent and 2.7 percent, respectively.

Among other stocks, Valeo rose 3.1 percent after the French auto parts company signed a major contract with BMW to supply the German carmaker’s upcoming electric vehicle platform with advanced systems to assist Leadership.