# European stocks rally for fifth day as defensives, miners climb
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-16
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: European shares rise for fifth day on miners, concerns
Meta Description: European shares rise for fifth day on back of miners and defensive sectors despite recession fears, STOXX 600 hits 10-week high.
URL: https://financedigest.com/european-stocks-rally-for-fifth-day-as-defensives-miners-climbhtml

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By Sruthi Shankar

(Reuters) -European shares extended gains for a fifth straight session on Tuesday, buoyed by defensive sectors and miners, although concerns over a potential recession limited further upside.

The continent-wide STOXX 600 index rose 0.4%, hitting a fresh 10-week high after recouping much of its June losses this week.

Miners jumped 1.6% to lead morning gains, lifted by 4.3% surge in London-listed [global miner BHP Group after stellar results](https://www.financedigest.com/will-global-commodities-suffer-as-a-result-of-brexit-the-experts-at-easymarkets-think-not.html "WILL GLOBAL COMMODITIES SUFFER AS A RESULT OF BREXIT? THE EXPERTS AT EASYMARKETS THINK NOT!").

Telecoms and utilities – [sectors seen as safer bets during economic uncertainty](https://www.financedigest.com/combatting-economic-uncertainty-in-2023-with-the-payments-sector-2.html "Combatting economic uncertainty in 2023 with the payments sector") – also advanced.

A lot of this (rally) is running on technicals and momentum, but the fundamentals haven’t changed,” said Seema Shah, chief strategist at [Principal Global](https://www.financedigest.com/discover-global-network-joins-nexo-standards-as-a-principal-member.html "Discover Global Network Joins nexo standards as a Principal Member") Investors.

The [economic outlook](https://www.financedigest.com/analysis-russians-feel-little-economic-pain-now-long-term-outlook-darkens.html "Analysis: Russians feel little economic pain now, long-term outlook darkens") for Europe is very negative. As we start to see recession come through and some of the hard [economic data](https://www.financedigest.com/big-data-suggests-leicesters-football-success-could-usher-in-economic-boom.html "Big data suggests Leicester’s football success could usher in economic boom") begins to deteriorate, that’s when you could see European equities deteriorate.

A survey on [German economic sentiment during early August](https://www.financedigest.com/german-new-passenger-car-registrations-up-3-in-august-industry-source.html "German new passenger car registrations up 3% in August – industry source") is due at 0900 GMT.

European [stocks have held near](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") recent peaks this week, despite weak data out of China and the United States as well as concerns around gas supply disruptions in Germany.

Russia’s Gazprom has cut gas flows to Germany through the [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") 1 pipeline to 20% of capacity, driving fears of a severe shortage in the winter season.

Among other stocks, [Delivery Hero climbed 9.9% after the German online takeaway food](https://www.financedigest.com/european-food-delivery-shapes-up-with-getirs-gorillas-buy.html "European food delivery shapes up with Getir’s Gorillas buy") company forecast a 7% growth on the quarter in its third-quarter gross merchandise value (GMV).

Sonova plunged 14% after the hearing aid maker lowered its full-year [earnings forecast](https://www.financedigest.com/centrica-names-obrien-as-new-cfo-raises-earnings-forecast.html "Centrica names O’Brien as new CFO, raises earnings forecast"), citing a slower-than-expected development in some important markets and higher component and freight costs.

[Pandora fell 6.4% after the Danish jewellery maker](https://www.financedigest.com/jewellery-maker-pandora-to-expand-lab-made-diamond-range.html "Jewellery maker Pandora to expand lab-made diamond range") reported second-quarter sales in line with expectations.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Sherry Jacob-Phillips and Sriraj Kalluvila)


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