European stocks recover on Wednesday after losing ground in the previous session, as Greek jitters and a
commodity squeeze receded.
The Stoxx Europe 600 rose 0.3% to 404.78, with all sectors advancing.
On Tuesday the benchmark dipped 0.7% as investors digested the developments in Greece’s debt crisis, and as the U.S. dollar rose on renewed interest rate-hike speculation, crimping commodity stocks. On Wednesday, though, energy stocks were higher.
London's FTSE 100 climbed 0.6% at 6,988.19, and France’s CAC 40 was up 0.5% at 5,106.90.
Germany’s DAX was flat at 11,625.31.
Wednesday saw mixed economic readings in Europe. In May, French consumer confidence declined, while German consumer sentiment is set to increase in June, said GfK market research group.
Ipek Ozkardeskaya, market analyst at London Capital Group, said in a note: “The weaker pace of economic growth aside, given the recent demise in the euro and the low inflation climate, it’s little wonder that the German consumer mood is improving.”
Meanwhile, Greece’s Athex Composite rose 0.6% at 827.37, and has managed to eke out a year-to-date gain of 0.2%.
There will be a meeting of central bankers and finance ministers from the Group of Seven nations this week in Dresden with global economic issues on the agenda. Greece’s debt crisis and the future of the country in the eurozone will be in the focus.
“The G7 meetings are expected to focus on economic growth, but it will be nigh on impossible to disregard the Greece issue as the talks progress,” Ozkardeskaya said.
