European stocks are powered by oil profits
On Wednesday, European shares ascended, as energy stocks were driven by crude gains. Besides this, market participants were thinking about an upcoming ECB’s decision.
The Stoxx Europe 600 traded +0.7%, at 339.97, backed up by revenues in healthcare and technology sectors. On Tuesday, the index fell 1%, while commodity shares led the losing sector after downbeat Chinese trade figures.
On Wednesday, the pan-EU benchmark was mostly flat, but after a while, it started picking up more strength as profits for crude leapt by more than 2%.
Meanwhile, we’re currently observing crude boost. OMV AG finished +2%, Tullow Oil PLC gained 3%, while French Total SA earned 0.5%.
The UBS rating was downgraded from buy to neutral and that made Tullow stocks go down. The company’s stocks are currently at rather a narrow discount in order to net asset value.
Market participants are waiting for the ECB’s Thurday’s monetary policy meeting, where the central bank’s president Mario Draghi is supposed to cut the bank’s deposit rate and announce further easing.