European shares advance, with miners gaining ground

[LONDON] European equities climbed higher in early trading on Tuesday, with the market catching up after a long weekend while mining stocks tracked stronger metals prices.

The pan-European FTSEurofirst 300 index was up 0.8 per cent by 0717 GMT after falling 1.5 percent on Thursday. European markets were closed on Friday and Monday due to the Easter holiday.

RSA Insurance rose 2.4 per cent after Deutsche Bank and Barclays increased their target prices for the stock.

The STOXX Europe 600 Basic Resources index rose more than 1 per cent as metals prices climbed, helped by a weaker dollar which makes metals more affordable for investors holding other currencies, and encouraging industrial profits in top metals user China.

Shares in Anglo American and Glencore also rose around 1 per cent.

Investors were also awaiting Federal Reserve Chair Janet Yellen's speech at 1620 GMT for fresh signals on the outlook for US interest rate hikes, after a chorus of hawkish comments from other Fed officials.

REUTERS