Oil rally helps energy stocks lead European shares higher

European Stock Markets

Oil rally helps energy stocks lead European shares higher

European shares ended higher on Thursday as a rally in crude prices saw energy stocks surge more than 2%, while strong earnings reports helped dispel some concerns over the infectious “Delta” variant of the coronavirus.

The pan-European STOXX 600 closed 0.6% higher at 455.63 points, with energy stocks marking their best day in one month. Energy services provider TechnipFMC  Plc was the top gainer in the sector, adding 4.4%.

Oil prices rose almost $2 on the prospect of increasing global demand, while lower U.S Crude stocks helped. Reuters also reported that OPEC would hike production by less than expected, which could result in a supply shortfall and support oil prices later this year.

“This approach comes amid a spreading Delta variant, which is still impacting mobility in certain geographies. Separately, Washington’s negotiations with Iran could also quench a substantial portion of expected deficits down the road,” analysts at TD Securities wrote in a note.

“A Summer Breakout in energy markets can continue to gather steam with supply artificially constrained.”

Travel-related stocks jumped 1.9% after falling for four days in a row on fears of more restrictions following a spike in the number of COVID-19 cases in Asia and the United Kingdom.

Airlines EasyJet, British Airways-owner IAG  and Ryanair rose between 1.5% and 4%.

The STOXX 600 was now within 1% of a record high hit in June, as growing optimism over a vaccine-led economic recovery this year saw sentiment jump to a 21-year high.

The FTSE MIB climbed up by 0.20% to 25,331.71. In the cash markets, the DAX futures Germany was trading up 0.45%  to 15,674.17. CAC 40 futures in France rose by 0.30% to 6,572.60 while the FTSE 100 futures in the U.K. was up by 0.50% to 7,159.97. ,at the time of writing.

About Author

Related posts

European stock markets

European Stock Futures Higher; Fed Meeting Looms Large

European stock markets are expected to open higher Tuesday, rebounding from the previous session’s sharp losses, although worries remain about the contagion risks associated with property giant China Evergrande Group, while the Federal Reserve’s policy meeting continues to dominate thinking. At 2:05 AM ET (0605 GMT), the DAX Futurescontract...

Read More

Leave a Reply