European stocks, bond yields jump on China stimulus reports

MILAN, July 7 (Reuters) - Stocks from European miners and other companies exposed to China like automakers and luxury firms soared on Thursday with traders citing reports of economic stimulus in the world's No.2 economy.

Bloomberg reported, citing unnamed sources, that China's Ministry of Finance was considering allowing local governments to sell 1.5 trillion yuan ($220 billion) of bonds in the second half, an acceleration of infrastructure funding aimed at shoring up the economy.

The STOXX Basic Resources index .SXPP , where big mining companies are listed, rose as much as 5.8%. That propped up the pan-European STOXX 600 .STOXX index, which was last up 1.4%.

Government bond yields also extended their rise following the report. Germany's 10-year yield, the benchmark for the euro area, was up over 14 bps by 0930 GMT, in the biggest daily jump since March 2020. DE10YT=RR
Reporting by Danilo Masoni and Yoruk Bahceli; editing by Yoruk Bahceli

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