European stocks end higher on support from oil, utilities
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)
* STOXX 600 up 0.8%
* Continental drops after downbeat 2021 outlook
* Pandora reports organic sales growth in February
By Sruthi Shankar and Shreyashi Sanyal
March 9 (Reuters) - European stocks ended Tuesday decidedly higher after extending gains from their best session in four months a day earlier, as a rise in shares of oil and utility companies helped counter losses in miners.
The pan-European STOXX 600 .STOXX rose 0.8%, with the utility sector .SX6P rising more than 1.5%.
Danish jewellery maker Pandora A/S PNDORA.CO jumped 7.2% after reporting a 12% rise in organic sales in February.
The continent's stock markets have come under pressure as a jump in bond yields on the back of quick vaccine rollouts and a massive U.S. coronavirus relief package have fanned worries about a potential rise in inflation.
Still, major European indexes have fared better than some of their tech-heavy U.S. peers.
"European market is much less tech-heavy than the S&P 500, much less growth-dominated, so higher bond yields are not such a negative," said Nick Nelson, head of European equity strategy at UBS.
"The speed of the move has been an issue ... if we're talking about a gentle rise in yields from here on, then that's more manageable, and more cyclical parts of the market such as Europe would do better."
The MSCI Europe value index .MIEU0000VPEU , which includes banking, energy and auto stocks, have risen about 9% so far this year, while its growth counterpart .MIEU0000GPEU that tracks tech and healthcare stocks is up 2%.
Miners .SXPP fell 1.8% as Dalian iron ore futures tumbled by the 10% daily limit on anti-pollution restrictions in China's top steelmaking city of Tangshan, while metal prices were also hit by a firm dollar.
UK-listed miners Rio Tinto RIO.L , BHP Group BHPB.L and Anglo American AAL.L fell between 2.4% and 4.4%, weighing on the commodity-heavy FTSE 100 .FTSE .
Investors will closely watch a European Central Bank meeting later this week to see if policymakers have decided to step up the pace of emergency bond purchases to calm skittish markets.
"For the ECB, this will provide a challenging environment, with policymakers in Frankfurt both unwilling and unable to match the Federal Reserve's dovishness," said Stephen Innes, chief global market strategist at Axi.
Meanwhile, data showed German exports unexpectedly rose in January buoyed by robust trade with China. A more comprehensive revised reading on euro zone's fourth-quarter GDP data is due at 10 a.m GMT.
Among other stocks, British insurer and asset manager M&G Plc MNG.L gained 4.7% after it posted better-than expected 2020 operating profit in its first full year as a standalone company.
German automotive parts maker Continental AG CONG.DE fell 8.0% after it forecast 2021 outlook below expectations.
Reporting by Sruthi Shankar and Devik Jain in Bengaluru; Editing by Subhranshu Sahu
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.