Investors are beginning to recognize the potential in European mining shares as China's gradual economic stimulus paves the way for a recovery in this overlooked sector. The STOXX Europe 600 mining index has experienced a decline of 15% this year, making it the worst-performing sector in the region. In comparison, the real estate sector has seen a 4.5% drop, while the retail index has shown a remarkable 27% increase.
The metals and mining sector is often seen as a means for European equity investors to gain exposure to China, given its status as the world's largest consumer of commodities.