Stock market

European Stocks Mixed; Miners Help FTSE 100 Outperform

Stock Markets1 hour ago (May 10, 2021 03:50AM ET)European Stocks Mixed; Miners Help FTSE 100 Outperform© Reuters.

By Peter Nurse 

Investing.com – European stock markets traded in a mixed fashion Monday, with the heavyweight miners helping the U.K. market outperform after Friday’s disappointing U.S. employment report kept the dollar weak and commodity prices strong.

At 3:50 AM ET (0850 GMT), the DAX in Germany traded 0.2% lower, the CAC 40 in France fell 0.1%, while the U.K.’s FTSE 100 climbed 0.2%, to a 52-week high. 

The large cap miners have pushed higher Monday, boosting the FTSE 100 index, as metals prices rise, helped by the recovery of the U.S. and Chinese economies, the two largest in the world, while stimulus plans target infrastructure and renewable energy in both countries.

Rio Tinto (NYSE:RIO) stock rose 3.1%, climbing to an all-time high, while Anglo American (LON:AAL) stock climbed 1.3% and BHP Billiton (NYSE:BBL) stock rose 3.2%, both to 52-week highs.

On the flip side, the airlines sector weakened, with easyJet (LON:EZJ) stock falling 2.6%, Ryanair (LON:RYA) stock dropping 1% and British Airways-owner IAG (LON:ICAG) down 1.6%, despite the U.K. allowing international travel to resume from May 17, as only 12 countries made its approved list.

Elsewhere, German biotech company BioNTech (DE:22UAy) stock surged 9.5% after revealing plans to build a new manufacturing site for its vaccines in Singapore.

U.S. nonfarm payrolls data on Friday showed jobs growth unexpectedly slowed in April, while in Europe, Phillip Lane, the ECB’s chief economist, told French newspaper Le Monde that the unemployment rate in the bloc wouldn’t return to its 2019 level before 2023 and the Eurozone’s gross domestic product will not return to its 2019 level before spring next year.

Elsewhere, oil prices strengthened and gasoline futures hit a near three-year high after a cyber attack on a U.S. pipeline operator resulted in a major disruption to U.S. supplies.

U.S. crude futures traded 0.7% higher at $65.34 a barrel, the Brent contract rose 0.7% to $68.73, while gasoline futures on the New York Mercantile Exchange rose 1.4% to $2.1568 a gallon, climbing to the highest level since May 2018 before paring gains.

The ransomware attack caused Colonial Pipeline, which provides nearly half of the U.S. east coast’s fuel supply, to shut down its entire system on Friday. Some smaller lines were restarted Sunday, but uncertainty remains over when its main pipelines can resume working.

Additionally, gold futures rose 0.2% to $1,835.50/oz, while EUR/USD traded 0.1% lower at 1.2148.European Stocks Mixed; Miners Help FTSE 100 Outperform

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