European stock markets staged a technical rebound yesterday after recent falls, taking their lead from firmer commodity prices, with company news also helping support share prices.
London’s FTSE 100 index of leading shares climbed 1.07 per cent to 5,923.49 points. In Frankfurt, the DAX rose 0.65 per cent to 7,303.53 points and in Paris the CAC 40 gained 0.92 per cent to 3,978 points.
“After five days of steady losses, the FTSE has opened up ... on an overnight rally in oil and healthy buying on equity markets in Japan, Hong Kong and South Korea,” said Spreadex trader Christopher Purdy.
“European equity markets have had a much more buoyant tone today (yesterday) bolstered by some positive company updates after the bell in the US and in the UK,” said CMC Markets market analyst Michael Hewson.
Brent crude oil rose back above $111 yesterday as the dollar weakened and ahead of energy inventory data from the United States.
That boosted the share prices of energy groups, with BP up 1.44 per cent to 441.05 pence and Cairn Energy rising 2.31 per cent to 429.90 pence.
BP was also in focus as Russia’s state-run oil firm Rosneft said it had received new cooperation proposals from the British company after their joint Arctic exploration agreement collapsed this week.
The Russian giant did not give details nor make clear whether they included a potential new Arctic agreement covering joint exploration of Russia’s northern reserves.
A statement yesterday said the offers were made as the sides tried to negotiate a way out of a dispute between BP and its TNK-BP Russian joint venture which scuppered the $16 billion deal.
The banking sector was also tracked as Spanish banks reported a fall in the proportion of bad loans on their books in March, ending a five-month run of increases.
Elsewhere in Europe, Brussels nudged up 0.15 per cent, Milan added 0.16 per cent, Madrid rose 0.36 per cent, Amsterdam gained 0.40 per cent, Lisbon put on 0.44 per cent and Swiss stocks climbed 0.60 per cent.
In a mixed day for lenders, Moody’s downgraded the debt ratings of Australia’s big four banks to Aa2, citing their dependence on volatile lending markets.