European shares rise on China stimulus package

European shares rose on Tuesday, after China’s stimulus measures boosted luxury goods and mining stocks.

The pan-European STOXX 600 index rose 0.8% to 520.40 points, while France’s CAC 40 rose 1.4%, the best performer among its peers.

The UK’s FTSE 100 rose 0.4%, helped by a rise in mining stocks.

The basic resources sector led sector gains, jumping 4.4%, after copper prices hit a two-month high on China’s measures and improved demand in the region.

Chinese regulators on Tuesday announced the biggest monetary stimulus and property market support measures since the coronavirus pandemic, cutting bank reserves by 50 basis points and cutting mortgage rates.