Europe close: Stocks ride gains in oil higher
European stocks rode gains in oil prices higher on Tuesday, recovering from losses in the previous session amid little major local data as concerns subsided about US president Donald Trump's ability to push through his fiscal policies.
The benchmark Stoxx Europe 600 index was up 0.61% to 377.30, Germany’s DAX gained 1.28% to 12,149.42 and France’s CAC was up 0.57% to 5,046.20.
In currency markets, the euro was flat versus the dollar at 1.0849 and 0.36% higher versus the pound to 0.8679.
Meanwhile, Brent crude advanced 1.82% to $51.69 per barrel after Iran's oil minister appeared to indicate that the world's major oil producers will extend a deal to maintain their combined output at reduced levels past June.
Speaking from Moscow, Bijan Zanganeh reportedly said it was likely that most producing nations would extend the November 2016 agreement to reduce their combined production, although time and face-to-face meetings were needed to evaluate the situation.
"European stocks have struggled for direction today after yesterday’s declines, and while the DAX has managed to make some decent progress, stocks elsewhere in Europe have lagged behind. While sentiment over the past few days has been on the negative side as a result of US President Trump’s local difficulties, the absence of any significant positive drivers is keeping investors adopt a cautious tone as we head into the end of the month and the quarter," said Michael Hewson, chief market analyst at CMC Markets UK.
Investors had been worried about Trump’s ability to deliver on his plans for tax cuts and infrastructure spending after Republican leaders withdrew their support for his healthcare bill last week.
Elsewhere, investors were also avoiding taking big risks ahead of British Prime Minister Theresa May triggering Article 50 on Wednesday and starting formal divorce proceedings with the EU.
In corporate news, E.On was up 0.65% after the German utility said it will return to debt markets with a sale of up to €3bn new bonds.
Wolseley surged 5.06% after the building materials supplier unveiled a jump in half-year profits, a name change to Ferguson, an exit from the Nordic region due to lack of synergies and said it will start reporting in US dollars ahead of what analysts see as a likely flip to a US listing.
Insurer Aviva gained 1.91% following a report that it is looking to sell Friends Provident International in a deal that could fetch up to $750m.
Thomas Cook fell 3.86% after it said its winter programme is closing out as expected.