European shares lifted by oil price boost

LONDON - European stocks advanced on Tuesday, with the energy sector benefiting from higher oil prices and after overnight gains on Wall Street, dealers said.

By (AFP)

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Published: Tue 27 Jun 2006, 7:34 PM

Last updated: Sat 4 Apr 2015, 1:13 PM

But they added that gains were capped by uncertainty over the outlook for US interest rates beyond an expected quarter-point hike by the Federal Reserve on Thursday.

In Tuesday trading, London’s FTSE 100 index of leading shares won 0.10 percent to 5,686.80 points, Frankfurt’s DAX 30 index increased also by 0.10 percent to 5,520.04 points and in Paris the CAC 40 gained 0.15 percent to 4,808.70.

The DJ Euro Stoxx 50 index of leading eurozone shares added 0.13 percent to 3,539.35 points.

The euro stood at 1.2567 dollars.

US shares had posted modest gains on Monday as a flurry of global merger and acquisition activity helped ease market anxiety about a Federal Reserve decision on interest rates.

Japanese share prices inched higher on Tuesday as the market opted to wait for a closely watched US Federal Reserve decision on interest rates later this week, dealers said.

Energy majors got a lift in European trading from the rising price of crude.

In Paris, the share price of French oil giant Total jumped 0.97 percent higher to 49.76 euros.

In London, oil company BP won 0.74 percent to 614 pence while BG Group saw its shares gain 0.79 percent to 702.5 pence.

Back in Paris, shares in European steel group Arcelor retreated by almost 1.5 percent to 37.24 euros.

The stock had rocketed by nearly 8.0 percent the previous day in the wake of the company’s agreed 27.4-billion-euro (34.4-billion-dollar) merger with sector rival Mittal Steel.

Trading in Arcelor shares had resumed on Monday, after being suspended in Paris, Madrid, Luxemboug and Brussels last Wednesday as the company put the finishing touches to the deal.

Back in US trading on Monday, the Dow Jones Industrial Average climbed 0.51 percent to 11,045.28 points while the Nasdaq composite advanced 0.58 percent to 2,133.67 points.

The broad-market Standard and Poor’s 500 index increased 0.49 percent to 1,250.56 points.

Sentiment was lifted by a blockbuster deal in the mining sector in which US giant Phelps Dodge agreed to buy Canadian rivals Inco and Falconbridge for about 40 billion dollars, forging the world’s largest nickel company and a leading copper miner.

Separately, US health care group Johnson and Johnson said it was buying the consumer health products division of Pfizer for 16.6 billion dollars.

In Asia on Tuesday, Tokyo’s benchmark Nikkei-225 index won 0.13 percent to close at 15,171.81 points.

The market had opened on a positive note after moderate gains overnight on Wall Street but it struggled to close in positive territory due to the subdued mood ahead of the US rate call.

Hong Kong’s key Hang Seng Index closed down 0.19 percent lower at 15,774.70 points.

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