Published: Tue, May 16, 2017
Economy | By Melissa Porter

European shares lifted by bounce in oil prices, dealmaking

European shares lifted by bounce in oil prices, dealmaking

The FTSE 100 Index lifted 12 points to 7447.4 in afternoon trading, easing back from a record 7,460.2 earlier in the session.

Equity markets in Frankfurt, London and NY ended at fresh records Monday, lifted by a rally in oil prices that boosted energy shares and by upbeat German election news.

On the currency markets, the pound was making headway against the United States dollar after the rallying oil price put a dent in the greenback.

Market participants cheered the fresh all-time high, but some also anxious that the narrow breadth of companies climbing may imply that a downturn, but not a correction-or pullback from a recent high of at least 10%-may be in the offing.

He said: "Theresa May is going for the jugular and markets like it".

That gave a boost to petroleum producers such as Royal Dutch Shell and Chevron.

Brent crude surged 2.52% to $52.12 per barrel, while US crude gained 2.57% to $49.07.

The biggest afternoon fallers in the FTSE 100 Index were TUI (-47p to 1143p), ITV (-4p to 188.3p), Next (-83p to 4262p), Shire (-70p to 4680.5p) and Johnson Matthey (-42p to 3088p).

The move in the oil price came after the energy ministers of Saudi Arabia and Russian Federation jointly announced that the current agreement to cut production, which began late previous year, would be extended until March 2018.

Metals prices logged gains, led by a almost 2% rise for platinum futures. Tui's share price has lost 4.03 percent to 1,142.00p. Their worst session since February came after the travel services company posted a slightly wider, first-half adjusted loss of $251.9 million euros ($273.9 million).

European stocks opened firmly higher Monday as investors shrugged off the impact of the weekend's global cyber attack and focused on improving corporate earnings and a stabilizing political landscape across the region.

The pound traded at $1.2920, up from $1.2887 late Friday in NY. The rate on a year-over-year basis is forecast to rise to 2.5%, which would be the highest since September 2013, according to FactSet data. Steel pipe maker Tenaris moved up 2.1%.

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