UPDATE 2-European shares end higher as commodity majors reverse losses

* STOXX 600 recovers from initial losses
* HelloFresh bottoms out STOXX 600
* Miners gain as base metal prices steady

(Updates to market close)
By Sruthi Shankar and Ambar Warrick
March 2 (Reuters) - Europe's benchmark stock index edged
higher on Tuesday as stability in the bond market gave stocks
some breathing room, with major commodity-linked stocks
reversing losses on a turnabout in oil and metal prices.
The pan-regional STOXX 600 index .STOXX rose 0.2% after
marking its best day in nearly four months on Monday, with
mining stocks .SXPP among the top gainers as copper prices
steadied near 10-year highs. MET/L
Oil stocks .SXEP also pared a bulk of the day's losses
after oil prices steadied ahead of an OPEC+ meeting, where
producers are expected to ease supply curbs to feed growing
demand on a gradual economic recovery. O/R
European shares pulled back from one-year highs in February
due to a spike in bond yields, as investors feared a potential
rise in inflation due to global stimulus measures could prompt
central banks to tighten monetary policy.
However, several European Central Bank officials have said
this week the bank will prevent a premature increase in
borrowing costs, including using the flexibility embedded in its
bond purchase programme.
"When we look at Western markets, we are not anticipating
rate moves, which is why I'm comfortable with the rise in
yields," said Lewis Grant, a senior portfolio manager at
Federated Hermes in London.
"We need to acknowledge that yields move because of optimism
over re-opening, and that is a good thing for equities."
Euro zone inflation was also steady in February, taking a
break in what is likely to be a temporary but sharp spike in
consumer prices in the coming months as more economies reopen.
"Temporary factors are pushing up the rate right now... we
expect the elevated levels of inflation in 2021 to be largely
transitory and that weaker inflation is set to return in 2022,"
analysts at ING said.
Among individual movers, Swiss chocolate maker Lindt &
Spruengli LISN.S jumped 3.3% after saying that it aimed for 6%
to 8% organic sales growth this year thanks to pent-up demand
after the pandemic hit its business. German remote connectivity software company TeamViewer
TMV.DE rose 4.2% after it said it had acquired Upskill, a U.S.
company that specialises in augmented reality applications for
front-line workers. French yoghurt maker Danone DANO.PA slipped nearly 2% as
investors questioned whether a recent splitting of its chairman
and chief executive roles would give a new CEO room to act.
HelloFresh HFGG.DE bottomed out the STOXX 600 as the
German meal kit delivery firm said it expects most of its
markets to normalise in 2021, after a boom in the prior year.