Oil gains lift European shares, STOXX index holds just off record high
European shares rose on Wednesday, as energy stocks tracked a jump in oil prices, while investors turned to a Federal Reserve meeting for cues on whether the central bank was beginning to debate tapering its ultra easy monetary policy. The pan-European STOXX 600 was up 0.3% by 0704 GMT.
- Country:
- United Kingdom
European shares rose on Wednesday, as energy stocks tracked a jump in oil prices, while investors turned to a Federal Reserve meeting for cues on whether the central bank was beginning to debate tapering its ultra easy monetary policy.
The pan-European STOXX 600 was up 0.3% by 0704 GMT. If gains hold until the end of the day, the index will mark its longest gaining streak in three-and-a-half years. The benchmark index has scaled record highs this year as investors bet a steady vaccination programme would jumpstart economic growth, but a recent jump in inflation has sparked concerns of a sooner-than-expected tightening in global monetary policy.
Data on Wednesday showed British inflation unexpectedly jumped above the Bank of England's 2.0% target in May and looked set to rise further as the country re-opens its economy from coronavirus-induced lockdowns. Still, London's commodity-heavy FTSE 100 rose 0.3% with oil majors BP and Shell tracking a jump in Brent crude to its highest since April 2019.
The European energy stock index added 0.6%. In company news, EverArc Holdings Ltd jumped 8% as it said it would buy firefighting products and lubricant additives manufacturer Perimeter Solutions in a deal valued at about $2 billion.
SAP shares fell 1.2%, hit possibly by a disappointing profit forecast from U.S. software rival Oracle Corp.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
ALSO READ
New Zealand aims to boost U.S. ties amid global instability
Mumbai police apprehend trusted associate of Cox & Kings owner in Rs 400-crore bank fraud investigation
U.S. journalist missing in Russian-controlled eastern Ukraine, say local police
US STOCKS-Futures steady ahead of big bank earnings
U.S., Japan, Philippines condemn Beijing's South China Sea moves in summit