European equities are on the rise; Oil stocks, Infineon posts gains

By Peter Nurse

Investing.com – European stock markets edged higher on Tuesday, helped by strength in the energy heavyweight sector, while Infineon (OTC: IFNNY) impressed with a positive outlook for 2022.

At 03:35 ET (07:35 GMT), the DAX in Germany was trading 0.1% higher, the CAC 40 in France rose 0.3% and the UK FTSE 100 climbed 0.5% .

The important energy sector received a boost in Europe on Tuesday thanks to the rise in crude oil prices to multi-year highs. This follows the decision of the Organization of the Petroleum Exporting Countries and its Russian-led allies, a group known as OPEC +, to continue to increase production only gradually despite the recovery in demand then that the Covid-19 wave of the Delta variant decreases.

Global cases hit their lowest level in nearly two months on Monday, according to data from Johns Hopkins.

US crude futures traded up 0.3% to $ 77.89 per barrel, while the Brent contract rose 0.5% to $ 81.69. Both contracts gained well over 2% on Monday, with WTI hitting a seven-year high and Brent hitting a three-year high.

The gains helped oil majors advance on Tuesday, with BP (NYSE: BP) stock climbing 1.2% to a 52-week high, Royal Dutch Shell (LON: RDSa) stock rising 0.6% , the Eni share up 0.7% and the TotalEnergies share up 0.8%. % upper.

In other company news, Infineon (DE: IFXGn) stock rose 0.8% after the German semiconductor maker confirmed full-year guidance and predicted strong earnings gains the next year.

Swiss Re (OTC: SSREY) stock rose 0.3% after the reinsurer increased its burden of preliminary claims from Hurricane Ida to $ 750 million, while updating its loss estimate for the July floods in Europe to about $ 520 million. Greggs stock rose 3.7% after the UK bakery chain raised its full-year profit forecast despite warning of mounting cost pressures.

In business news, UK new car registrations fell 35% year on year last month, preliminary industry data showed on Tuesday, marking September the weakest in at least 23 years.

On the flip side, French industrial production rose 1.0% in August, a significant improvement over the revised 0.5% gain in the previous month, while final PMI data for the region European Union are still expected.

The positive opening for Europe comes despite concerns about losses on Wall Street on Monday, with the Nasdaq Composite, in particular, falling more than 2% due to rising Treasury yields as the deadlock on the US debt ceiling continues.

Technological weakness translated into sales in Asia, with Japan’s Nikkei 225 falling more than 2%, while mainland Chinese markets remain closed.

Elsewhere, gold futures fell 0.4% to $ 1,760.90 / oz, while EUR / USD traded down 0.2% to 1.1600.

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