Commodities push Europe higher

On Tuesday European stocks rose as miners rebounded and investors turned their focus to corporate earnings.

The Stoxx Europe 600 Index rose 0.3 percent at 8:23 a.m. in London. Miners and energy shares gained the most, tracking copper and oil prices higher, while banks also rebounded from yesterday’s losses. European shares are rising for the third time in four days, narrowing a valuation gap with U.S. peers. German industrial production dropped in March as demand for investment goods and energy receded, while exports rose for a third month.

Investors are looking around for the next major market catalyst after the dissipation of concerns over European populism in the wake of Emmanuel Macron’s French election victory. Impending central bank meetings, a potential unwind of the Federal Reserve balance sheet and more scheduled elections have so far failed to dent optimism — volatility is at multi-year lows in both fixed-income and stocks, and shares are trading at record levels as labor-market strength and earnings buoy growth.

Company results were in focus, with shares in Italy’s David Campari jumping nearly 8 percent after the spirits maker reported firstquarter earnings boosted by highmargin brands.

More than halfway into the firstquarter results season, earnings for European firms have been strong overall, with major euro zone blue chip firms seeing average earnings growth of around 20 percent, according to Thomson Reuters I/B/E/S data.

Elsewhere a rebound in basic resources stocks and gains among energy firms also helped support the market, with miners up after a rise in the underlying price of copper.

Asian shares slid from a 23month high as Japanese equities retreated after Monday’s rally and banking stocks pulled down Australian shares. Chinese stocks halted a five-day selloff. MSCI AC Asia Pacific Index fell 0.5 percent as of 5:09 p.m. Hong Kong time. Japan’s Topix retreated 0.3 percent after reaching the highest level since December 2015 on Monday.