Market Analysis

European stocks rise as the resources and oil sectors prosper

Amos Simanungkalit · 11 Sep 202411.2K Views

European shares saw a positive start on Wednesday, driven by gains in the oil, gas, and basic resources sectors. Investors are now awaiting a crucial U.S. inflation report, which could influence the Federal Reserve’s interest rate decision next week.

The pan-European STOXX 600 index rose 0.3% as of 0710 GMT, with all regional indexes showing gains.

The oil and gas sector led the rise, up 1.2%, as concerns over Hurricane Francine potentially disrupting U.S. output outweighed broader market worries.

Basic Resources also contributed to the positive trend, gaining 1.6% amid a rise in copper prices driven by a weaker U.S. dollar.

With limited economic data from Europe, investors are focused on the U.S. consumer price index, scheduled for release at 1230 GMT.

Britain’s FTSE 100 edged up 0.4% following GDP estimates that showed no month-on-month change in the UK’s economic output for July.

Attention is also on comments from European Central Bank board member Elizabeth McCaul and supervisor Claudia Buch, expected later in the day.

Commerzbank (ETR) saw a significant 15.7% surge after Italy’s UniCredit acquired a 9% stake in the German bank from the German government for 702 million euros ($775.29 million).

In contrast, Rentokil dropped more than 16% following the British pest control firm’s announcement of job cuts and a slowdown in North American revenue.