European stocks rise to two-week highs as commodity prices rise

European shares jumped on Monday to their highest level in two weeks, supported by mining and oil stocks, as the easing of measures to curb the outbreak of Covid-19 in China led to an increase in commodity prices.

The pan-European Stoxx 600 index rose 0.7 percent by 0716 GMT, reversing a sharp rise in Wall Street at the end of the week, which eased fears of continued high inflation.

The sub-index of oil companies rose 1.5 percent and the sub-index of mining companies rose three percent, with commodity prices recovering after losses incurred recently due to fears of a global recession.

Luxury retailers Louis Vuitton and Richmond, which rely on China for the bulk of their revenue, rose 0.8 percent and 2.4 percent, respectively.

Prosas shares rose 13.8 percent after the Dutch technology investor said it would gradually sell its 28.9 percent stake in Chinese software giant Tencent, which owns WeChat, which is worth more than $100 billion at current prices.