{"id":113072,"date":"2021-02-16T17:46:09","date_gmt":"2021-02-16T17:46:09","guid":{"rendered":"https:\/\/precoinnews.com\/?p=113072"},"modified":"2021-02-16T17:46:09","modified_gmt":"2021-02-16T17:46:09","slug":"european-shares-end-flat-as-mining-gains-offset-broader-losses","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/european-shares-end-flat-as-mining-gains-offset-broader-losses\/","title":{"rendered":"European shares end flat as mining gains offset broader losses"},"content":{"rendered":"
(Reuters) – European shares ended flat around a one-year peak on Tuesday as a boost from major mining and bank stocks was tempered by losses in most other sectors, with investors remaining uncertain over a euro zone economic recovery.<\/p> The pan-European STOXX 600 ended largely unchanged after jumping 1.3% in the previous session to its highest level since February 2020.<\/p>\n A 2% rise in shares of Glencore helped the European mining index climb to a near 10-year high, while higher iron ore and base metal prices supported the sector.<\/p>\n BHP Group, the world\u2019s largest miner by market capitalization, rose 1.5% after posting its best first-half profit in seven years and declaring a record interim dividend.<\/p>\n Commodity prices have benefited recently from expectations that increased stimulus measures and steady vaccinations will stoke global demand.<\/p>\n Energy stocks rose 0.5% on stronger oil prices.<\/p>\n Bank stocks rose to a more-than 11-month high as investors bought into some sectors that have been severely hit by the pandemic. But they still remained well below pre-COVID-19 levels.<\/p>\n Shares of Polish lender PKO Bank Polski topped the STOXX 600 on upbeat expectations over a long-running foreign currency mortgage issue.<\/p>\n Data showed euro zone economic output contracted by less than expected in the fourth quarter of 2020.<\/p>\n Other readings showed German investor morale was high over consumption picking up in the coming months, even as inflation expectations in the euro zone\u2019s largest economy were seen cooling.<\/p>\n The STOXX 600 has struggled to reach pre-pandemic levels, lagging its peers across the Atlantic as a new round of lockdowns and disruptions to a vaccination drive hurt sentiment.<\/p>\n \u201cThe weakness in economic activity will continue to weigh on output in the current quarter as restrictions curtail mobility and businesses postpone reopening,\u201d analysts at TS Lombard wrote in a note.<\/p>\n \u201cGrowth will bounce back strongly in H2 on the back of pent-up demand and an easing of restrictions, although the vigour in economic activity could be less than before.\u201d<\/p>\n Analysts hiked their first-quarter profit growth forecast for European listed companies to 42.7% from the 41% that was expected last week, according to Refinitiv data, on growing expectations of an economic recovery this year.<\/p>\n But fourth-quarter earnings are now expected to have fallen 19.9% versus the 18.2% drop seen last week.<\/p>\n Global equities have remained in demand as U.S. President Joe Biden negotiates a $1.9 trillion stimulus package. In the euro zone, finance ministers agreed on Monday that supportive measures for the economy should stay in place as long as needed.<\/p>\n