European stocks hit two-week high as commodities rebound

The continent-wide STOXX 600 index was up 0.7%, as of 0716 GMT, mirroring a sharp rebound on Wall Street late last week on easing concerns about persistently high inflation, Reuters reported.

Oil & gas and mining stocks gained 1.5% and 3%, respectively, as commodities rebounded from recent losses on growing fears about a global recession.

Shares of luxury retailers LVMH and Richemont, which rely on China for a major part of their revenue, rose 0.8% and 2.4%, respectively.

Prosus NV rallied 13.8% after the Dutch-based technology investor said it will gradually sell down its 28.9% stake in Chinese software giant Tencent, owner of WeChat, worth more than $100 billion at current prices.

Intesa Sanpaolo gained 3.5% after Italy's biggest bank halved its share buyback programme for this year to 1.7 billion euros ($1.79 billion).

Global stock markets are recovering ground as investors believe central banks could decide to raise interest rates by more modest amounts than previously thought.

The Federal Reserve of the United states and its peers are hiking borrowing costs in an attempt to cool inflation, which has soared around the world to the highest levels in decades.

However, such action has increased the prospect of a global recession, causing economists to think that future rate hikes could be less steep than in recent months.