Europe stock markets advance as oil prices retreat; DAX up 0.43%
Investing.com
Published Mar 08, 2011 04:59AM ET
During European morning trade, the EURO STOXX 50 climbed 0.33%, France’s CAC 40 added 0.31%, while Germany's DAX gained 0.43%.
Oil prices retreated from 29-month highs after the Organization of the Petroleum Exporting Countries said they were in discussions to boost production for the first time in more than two years, easing concerns over the global economic recovery.
Shares in the airline sector were boosted by the news, with Deutsche Lufthansa climbing 2.4%, while shares in Air France-KLM added 1.1%.
Meanwhile, shares in Europe’s largest automaker Volkswagen jumped 2.7% after UBS upgraded the stock to ‘buy’, citing its exposure to attractive end-markets. Shares in rival Daimler gained 2.2% after UBS reiterated its ‘buy’ rating on the stock.
French automakers Renault and Peugeot rose 1.5% and 1.3% respectively.
Elsewhere, shares in the telecommunications sector performed strongly after Morgan Stanley upgraded the sector to ‘maximum overweight’.
Shares in Vodafone rallied 2.4%, France Telecom added 1.4%, while Deutsche Telekom saw shares climb 1.25%.
In London, the FTSE 100 added 0.21% after U.K. insurance and investments group Old Mutual reported better-than-expected earnings for the 2010 fiscal year.
Following the results, Old Mutual saw shares climb 2.3%, rival Aviva saw shares add 1.2%, while HSBC Holdings saw shares gain 1.6%.
Meanwhile, shares in oil and gas explorer Cairn Energy jumped 2.1% after Bank of America recommended buying the stock.
The outlook for U.S. equity markets, meanwhile, was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.35%, S&P 500 futures indicated a rise 0.51%, while the Nasdaq 100 futures added 0.31%.
Later in the day, Germany was to release official data on factory orders, while the U.S. was to publish a report on economic optimism.
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Written By: Investing.com
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