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European stocks recover from technology decline due to solid data and raw materials

Por Sruthi Shankar y Ambar Warrick

(Reuters) – European stocks had their best day in nearly two months on Wednesday – recovering from a strong selloff in the previous session – and commodity stocks hit a 10-year high, and data showed trading activity of the euro zone rebounded in April.

* The pan-European STOXX 600 Index closed 1.8% higher, erasing almost all of Tuesday’s 1.4% loss, as fears of a tightening of monetary policy in the United States rocked technology stocks.

* European tech stocks rose 2.7% after falling 3.7% in the previous session.

* Europe’s commodities index jumped 4.7% to a 10-year high, with large London-listed miners leading gains after copper prices hit a decade high on expectations of a rapid recovery of the world economy.

* Oil and gas stocks rose 3.2% on their best day since mid-February, as expectations of a recovery in demand benefited oil prices, while the construction and materials index gained 2, 9% to an all-time high.

* “Data shows that the vaccine deployment rate in Europe is now recovering rapidly, European macroeconomic data is improving, and the first-quarter earnings season suggests companies can deal with higher input costs,” they wrote. UBS analysts in a note.

* Business activity in the euro zone accelerated in April as the bloc’s dominant service industry ignored the lockdowns and returned to growth, a survey showed.

* Growth-sensitive stocks have benefited from expectations of an economic recovery, with banks, travel and leisure and commodities leading gains this year.

(Reporting by Sruthi Shankar in Bengaluru; Edited by Anil D’Silva and Alex Richardson)

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