[BENGALURU] European stocks marked their best day in nearly two months on Wednesday, recovering from a sharp sell-off in the previous session as resource stocks hit a 10-year high, while data showed euro zone business activity picked up in April.

The pan-European Stoxx 600 index ended 1.8 per cent higher, wiping out almost all of its 1.4 per cent loss on Tuesday, when concerns over policy tightening in the United States had rattled high-value technology stocks.

European tech stocks rose 2.7 per cent after a 3.7 per cent plunge in the previous session.

Europe's basic resources index jumped 4.7 per cent to a 10-year peak, with big London-listed miners leading gains as copper prices hit decade highs on optimism about a speedy recovery in the global economy. The index also marked its best day in nearly a year.

Oil and gas stocks surged 3.2 per cent in their best day since mid-February, as expectations of recovering demand benefited oil prices, while the construction and materials index jumped 2.9 per cent to a record high.

"Data shows the vaccine run-rate in Europe is now picking up rapidly, European macro data is improving and the Q1 earnings season suggests corporates are able to deal with higher input costs," UBS analysts wrote in a note.

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Euro zone business activity accelerated in April as the bloc's dominant services industry shrugged off renewed lockdowns and returned to growth, a survey showed.

Growth-sensitive stocks have benefited from expectations of an economic recovery, with banks, travel and leisure and basic resources leading gains this year. A strong first-quarter earnings season has also helped sentiment.

European earnings are now expected to surge 83.1 per cent in the first quarter, according to Refinitiv IBES data, up from last week's forecast of 71.3 per cent growth.

German cooking appliances maker Rational jumped 12.7 per cent to the top of the STOXX 600, after it posted better-than-expected first-quarter results.

Danish shipping company Maersk was up 6.9 per cent after it said it was expecting an "exceptionally strong"performance in the first quarter to continue for the rest of the year.

Stellantis rallied 7.0 per cent after the carmaker reported better-than-expected quarterly revenue but warned that a global shortage of semiconductors would affect production this quarter more heavily.

German fashion house Hugo Boss rose 5.2 per cent as it saw first-quarter sales almost double in mainland China, and its casual business returned to growth.

Delivery Hero fell 4.2 per cent as former owners of Woowa Brothers sold shares worth about 1.25 billion euros (S$2 billion) in the online takeaway food company.

REUTERS