European stocks surged on Tuesday, boosted by unconfirmed reports that China is considering a fresh round of stimulus measures and by dovish remarks from US Federal Reserve officials.
The region-wide Stoxx Europe 600 rose 1.6 per cent, pushed higher by basic materials stocks and on track for its best day since July 2022, LSEG data showed.
London’s FTSE 100 gained 1.7 per cent, led by mining companies including Anglo American and Antofagasta, which added 4.5 per cent and 2.9 per cent, respectively. France’s luxury goods-dominated Cac 40 jumped 1.5 per cent.
“The region is ripping given the combination of dovish Fed-speak, a lack of escalation of the Israeli conflict to a regional conflict, and potential [additional] stimulus from China”, JPMorgan analysts said.
