European stocks hit two-week high as commodities rebound

European shares on Monday jumped to their highest level in two weeks, underpinned by miners and oil stocks, as an easing of COVID-19 restrictions in China boosted commodity prices.

The continent-wide STOXX 600 index was up 0.7%, as of 0716 GMT, mirroring a sharp rebound on Wall Street late last week on easing concerns about persistently high inflation.

Oil & gas and mining stocks gained 1.5% and 3%, respectively, as commodities rebounded from recent losses on growing fears about a global recession.

Shares of luxury retailers LVMH and Richemont , which rely on China for a major part of their revenue, rose 0.8% and 2.4%, respectively.

Prosus NV rallied 13.8% after the Dutch-based technology investor said it will gradually sell down its 28.9% stake in Chinese software giant Tencent, owner of WeChat, worth more than $100 billion at current prices.

Intesa Sanpaolo gained 3.5% after Italy's biggest bank halved its share buyback programme for this year to 1.7 billion euros ($1.79 billion).