European Stocks Rally After Losing Streak
European stocks are poised to end a losing streak as miners rally. The Stoxx Europe 600 Index was up 0.3% as of 8:30 a.m. in London, with miners leading the gains. The index has been in the red for the past four days, weighed down by a selloff in technology stocks.
Mining Stocks Lead the Way
Mining stocks were the biggest gainers, with the Stoxx Europe 600 Basic Resources Index rising 1.2%. Anglo American Plc and BHP Group Plc were among the biggest gainers, rising 2.3% and 1.9%, respectively.
The rally in mining stocks was driven by a surge in copper prices. Copper prices rose to a record high of $10,722 a metric ton on Monday, driven by strong demand from China and a weaker U.S. dollar.
Tech Stocks Retreat
Technology stocks, which had been leading the market higher in recent weeks, retreated on Monday. The Stoxx Europe 600 Technology Index fell 0.7%, with chipmakers leading the losses. Infineon Technologies AG and ASML Holding NV were among the biggest decliners, falling 1.3% and 1.2%, respectively.
The retreat in tech stocks was driven by a selloff in U.S. tech stocks. The Nasdaq Composite Index fell 1.3% on Monday, weighed down by a selloff in tech giants such as Apple Inc. and Microsoft Corp.
Oil Prices Rise
Oil prices rose on Monday, with Brent crude futures rising 0.7% to $72.90 a barrel. The rally in oil prices was driven by a weaker U.S. dollar and expectations of a recovery in demand.
The rally in oil prices helped energy stocks, with the Stoxx Europe 600 Oil & Gas Index rising 0.7%. BP Plc and Royal Dutch Shell Plc were among the biggest gainers, rising 1.2% and 0.9%, respectively.
Eurozone Inflation Slows
Inflation in the eurozone slowed in June, according to data released on Monday. The annual rate of inflation fell to 1.3% in June, down from 1.6% in May. The slowdown in inflation was driven by a decline in energy prices.
The slowdown in inflation could put pressure on the European Central Bank to provide more stimulus. The ECB is expected to announce a new round of stimulus measures at its meeting later this week.
Outlook
European stocks are poised to end a four-day losing streak as miners rally and tech stocks retreat. The rally in mining stocks was driven by a surge in copper prices, while the retreat in tech stocks was driven by a selloff in U.S. tech stocks. Oil prices rose on Monday, helping energy stocks, while inflation in the eurozone slowed in June. The ECB is expected to announce a new round of stimulus measures at its meeting later this week.