European stocks rise on mining sector gains, investors keep ‎eyes on the Middle East

European stocks rose today, Monday, led by gains achieved by mining companies amid optimism about demand from China, the largest consumer. However, trading witnessed a cautious approach as investors evaluated the possibilities of escalating conflict in the Middle East.

According to Reuters, the European STOXX 600 index rose 0.4 percent by 0707 GMT.

The mining sector index rose 1.3 percent with an increase in basic metal prices, supported by hopes for stronger demand from China, after data last week showed some signs of stability in the second largest economy in the world.

The index was also boosted by gains amounting to nearly four percent for the shares of the Swedish Steel Industry Company (SSA).

Global risk appetite is still weak due to fears that the conflict between Israel and the Palestinian Islamic Resistance Movement (Hamas) will spread to the broader region and intensify after Iran warned Israel against escalation.

Among other individual stocks, BioNTech’s shares, listed on the Frankfurt Stock Exchange, fell by nearly five percent after its partner Pfizer on Friday lowered expectations for full-year revenues due to a decline in sales of the Covid-19 vaccine and treatment.