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* STOXX Europe 600 index up 0.6 pct
* Mining shares among top gainers
* Rotork surges after guidance
By Atul Prakash
LONDON, Nov 22 European mining shares rose 3
percent on Tuesday, underpinning Europe's benchmark STOXX 600
index as the global reflation trade in the wake of Donald
Trump's victory in the U.S. presidential election continued.
The pan-European STOXX 600 index was up 0.6 percent
by 0924 GMT after climbing to its highest level since Nov. 10.
The index extended the pervious day's gains of 0.25 percent and
mirrored a rise on Wall Street.
All three major U.S. stock indexes set record closing highs
on Monday. Small caps also advanced, pushing the Russell 2000
index to a record high close, with the session marking
the first time all four indexes hit closing records on the same
day since Dec. 31, 1999.
The European Basic Resources index, which has now
doubled from its January lows, was the best performing sector
index. It was up 3 percent after prices of major industrial
metals such as copper and aluminum increased.
"I am fairly bullish on miners and banks and have an
'overweight' recommendation on both the sectors. The focus of
markets has shifted to the expected increase in infrastructure
and defense expenditure in the United States," Christian
Stocker, strategist at UniCredit in Munich, said.
"As a result of such 'reflation expectations', long-term
bond yields have been increasing and industrial metals have been
rallying. The reallocation that has started in these sectors
Shares in Anglo American, BHP Billiton,
Glencore, Rio Tinto and Antofagasta
advanced 3.4 to 5.2 percent.
The STOXX Europe 600 Oil and Gas index was up 1.3
percent, while European banks rose 1 percent.
European shares slumped in a knee-jerk reaction after
results showed in early November that Trump had won the U.S.
presidential election. However, the market rebounded the same
day and has gained 4.5 percent from an intra-day low on Nov. 9.
Equities were boosted by Trump's election promises to
increase investment in infrastructure projects and work on a
fiscal stimulus programme. However, the lack of policy details
have prompted investors to stay cautious.
"Political uncertainty in the United States has diminished
substantially even though we do not know the shape of Trump's
policies and government appointments yet," Lorne Baring,
managing director of B Capital Wealth Management, said.
"The market is reacting to the better political environment
and, bar the Italian referendum which will probably be another
source of concern, there is a sigh of relief that the year's
turbulent and somewhat surprising politics are behind us."
Italy's Prime Minister Matteo Renzi has said he could resign
if he loses the Dec. 4 referendum on constitutional reforms.
Elsewhere, Rotork shares surged more than 11 percent
after the Valve maker said it expected its revenues coming
towards the top end of market expectations.
Genmab rose 3 percent after the company received
U.S. approval for a drug, while Essilor shares, down
6.8 percent, were poised for their worst day in eight years
after the firm cut its outlook.
(Editing by Andrew Heavens)