European stocks stable, Telecom Italia is top loser in Eurozone

European stocks stabilized today, Monday, as continued gains in shares of mining companies, on the back of bets on a recovery in demand in China, offset losses in Telecom Italia, which led the decline in stocks in the euro zone.

The European Stoxx 600 index did not witness a significant change after a slight rise at the start of trading

According to “Reuters”, the basic resources index jumped 1.4 percent after the rise in industrial metal prices, hoping for a recovery in demand from China, the largest consumer, and supported by the disruptions in global mining supplies.

This also led to a rise in oil prices and gains for European energy stocks by 0.3 percent

The Euro Stoxx index, which includes the largest companies in the euro zone, fell 0.1 percent

Telecom Italia shares fell 3 percent after a government-sponsored bid failed to pass an order from US-based KKR Investments to take over the country’s mobile phone monopoly at the weekend.

Global markets stumbled for much of last week after higher-than-expected US inflation data added to evidence that sharp interest rate increases have not yet managed to calm prices to the satisfaction of the Federal Reserve.

Austrian Raiffeisen Bank International fell nearly 7 percent after Reuters reported that the US sanctions authority had launched an investigation into the bank’s Russia-related business.

The European auto and auto parts sector index rose 0.6 percent.