Major European indices trading higher supported by mining shares

European stocks showing a strong increase, aided by the recovery of stocks of commodity producers and statistics on business activity in the euro area.

A preliminary report from Markit Economics showed that the euro zone's private sector continued to expand in August, and recorded the fastest pace in seven months. The composite PMI index, which covers the production sector and the service sector rose in August to 53.3 points compared with 53.2 points in July However, a preliminary index of business activity in the services sector rose to 53.1 points from 52.9 points a month earlier. It was predicted that the index will drop to 52.8. With regard to the manufacturing PMI in August, it dropped to 51.8 points versus 52.0 points in July. It became known that the German private sector expanded at a slower rate - the composite index fell to 54.4 points from 55.3 points in July. At the same time, the French private sector recorded the fastest growth in ten months - the composite index improved to 51.6 points from 50.1 points.

Oil prices declined amid reports that Iraq intends to increase the export of raw materials. In July, the export of Iraqi oil, according to the International Energy Agency, has reached 3.71 million barrels per day. The production volume was approximately 4.33 million barrels, which is 80 thousand higjer compared to June. In addition, investors are concerned about the likely return of oil production in Nigeria.

The composite index of Europe's largest enterprises Stoxx 600 added 0.7 percent. Shares of mining companies shows the greatest increase among the 19 industry which is associated with the approach of iron ore prices to two-week high.

Shares of BHP Billiton Ltd. and Glencore Plc rose 3.2 percent and 2 percent respectively.

UniCredit quotes rose 3.9 percent after a Polish newspaper reported that the leaders of PZU SA and representatives of the Polish State Development Fund will head to Milan to discuss the terms of the purchase of Bank Pekao SA.

The cost of Persimmon Plc climbed 4.7 percent after a strong first half of the year. In addition, the Chief Executive Officer Jeffrey Fairburn said he did not see any changes in consumer behavior since Brexit.

Securities of Straumann Holding AG increased 1.6 percent after the medical equipment manufacturer raised its full-year outlook for earnings.

Capitalization of Schneider Electric SE increased by 1.4 percent, as people familiar with the matter, said that the company is considering DTN sale for about $ 1.5 billion.

At the moment:

FTSE 100 +40.18 6868.72 + 0.59%

DAX +92.70 10587.05 + 0.88%

CAC 40 +32.42 4422.36 + 0.74%