International Development News
Development News Edition

UPDATE 1-Oil boost and Italy budget hopes support European shares; Next shines


UPDATE 1-Oil boost and Italy budget hopes support European shares; Next shines

European shares were supported in morning trading on Tuesday by gains among oil stocks, while British clothing retailer Next rallied after raising its profit guidance.

The pan-European STOXX 600 index rose 0.2 percent by 0801 GMT, recovering part of the losses suffered in the previous session when worries over a protracted U.S.-Sino trade war sparked profit-taking.

Optimism over the Italian budget also buoyed sentiment.

Oil majors BP and Shell rose more than 1 percent after Brent hit a fresh four-year high amid looming U.S. sanctions against Iran and an apparent reluctance by OPEC and Russia to raise output to offset the expected to hit to supply.

"Russia and Saudi Arabia essentially ignoring Trump's pleas, combined with U.S. sanctions hitting Iran's oil exports in early November mean we expect fresh multi-year highs for oil, which will also help the oil majors such as BP and Shell to gain ground in the near term," LCG analyst Jasper Lawler said.

The oil and gas index led sectoral gainers, up 1 percent at its highest level since mid-July.

Commodities trader and miner Glencore added 2.2 percent after launching a $1 billion share buyback.

Heavyweight drugmaker Novartis rose 1.2 percent after saying it would cut about 2,200 jobs in Switzerland over the next four years to help boost profitability.

Top gainer on the STOXX was Next, up 8.3 percent.

The clothing retailer posted a 0.5 percent rise in first-half profit and raised its full-year guidance after better-than-expected trading in August and early September.

Signs that Italy's coalition was likely to reach a compromise over the 2019 budget lifted Italian stocks and bonds with the country's top FTSE MIB equity index up around 1 percent, outperforming the broader market.

State-controlled Italian defence contractor Leonardo rose more than 3 percent after it won a helicopter order from the U.S. Air Force.

Italian banks, which are sensitive to political risk due to their big sovereign bond holdings, rose 1.5 percent. Their gains helped and growing expectations of a rate hike in the eurozone next year helped lifted the European banks up 0.7 percent.

Elsewhere, British American Tobacco fell 1.9 percent after news the cigarettes maker named Jack Bowles as CEO, while rival Imperial Brands added 0.6 percent following a trading update.


TRENDING

OPINION/BLOG/INTERVIEW

How music can help expectant mothers during pregnancy

Music provides pleasant ambience for all but its more important for expectant mothers as besides ensuring pleasant environment for them it also directly and indirectly influences the unborn babies. There are various scientific findings to c...

EdTech: A technical approach to flexible and cost-effective education

Its hight time for the world to go for innovative approaches like e-learning over traditional learning methods that need physical infrastructure, long-term planning, and huge investment. ...

Our school campaigns are our strongest ally: Joaquin Antuna, founder of Peace and Cooperation

Joaquin Antuna is the founder of Peace and Cooperation, a Spanish NGO which was nominated as peace messenger by the United Nations in 1986. Antuna is of very firm opinion that in order to have an incisive impact on the community we live in,...

'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

Videos

Latest News

UPDATE 1-U.S. says Nicaragua's surrounding of church sheltering protesters 'unacceptable'

The United States is deeply concerned about protesters on a hunger strike in a church in Nicaragua who have been unable to access water or electricity, and will use economic and diplomatic means to support democracy in the country led by Pr...

PM unhappy that ministers not present during Question Hour in Parliament

Prime Minster Narendra Modi is learnt to have expressed displeasure over the absence of some Cabinet ministers during Question Hour, sources in the government said on Thursday. The prime minister flagged the absence of some ministers during...

UPDATE 1-Boeing has settled more than half of Lion Air crash lawsuits -lawyer

Boeing Co has settled more than half of some 118 cases related to the fatal crash of a Lion Air flight on a 737 MAX aircraft in October 2018, attorney Dan Webb said at a court hearing on Thursday. Webb, a former U.S. attorney and veteran li...

UPDATE 3-U.S. sends Guatemala first Honduran migrant under asylum deal

The first Honduran asylum-seeker arrived in Guatemala on Thursday from El Paso, Texas, under a controversial U.S. agreement that establishes Guatemala as a safe third country to process people fleeing persecution in their homelands. Guatema...

Give Feedback