European stocks track counterparts higher, eyes on oil



European stocks opened higher on Wednesday, tracking their Asian counterparts but investors remained cautious as oil prices began to fall once again.

During European morning trade, the EURO STOXX 50 advanced 0.62%, France’s CAC 40 gained 0.50%, while Germany’s DAX 30 climbed 0.54%.

Oil prices moved lower on Wednesday, after rising above $34 a barrel on Tuesday amid hopes for a reduction cut by the world’s biggest oil producers.

European equities had strengthened after data on Monday showed that the euro area fell back into deflation in February, cementing expectations for more easing by the European Central Bank at its upcoming meeting on March 10.

Financial stocks were broadly lower, as BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) rallied 1.34% and 2.49%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) gained 0.58% and 1.11%.

Among peripheral lenders, Italy’s Unicredit (MI:CRDI) and Intesa Sanpaolo (MI:ISP) surged 2.22% and 2.27% respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) jumped 1.69% and 1.31%.

Elsewhere, Airbus Group  SE rose 0.30% after saying it won’t help competitors such as China develop aircraft, and that the country’s wide-body orders don’t justify building its most lucrative models there.

Meanwhile, Steinhoff International Holdings Ltd inched up just 0.04% after making a $924 million bid for French electronics retailer Darty Plc, in a move to hinder Groupe FNAC  agreement to buy the company.

In London, commodity-heavy FTSE 100 gained 0.42%, boosted by gains in the mining sector.

Shares in Rio Tinto  jumped 2.27% and Glencore  advanced 2.61%, while rivals Bhp Billiton and Anglo American  surged 3.84% and 4.05% respectively.

Financial stocks added to gains, as Lloyds Banking and Barclays climbed 0.48% and 0.54%, while the Royal Bank of Scotland  gained 0.77% and HSBC Holdings  rallied 2.27%.

On the downside, ITV  plummeted 1.80% after the broadcaster said it expects to outperform the television advertising market in 2016 after full-year revenue increased by 15%.

In the U.S., equity markets pointed to a steady to lower open. The Dow Jones Industrial Average futures pointed to a 0.07% dip, S&P 500 futures a 0.10% fall, while the Nasdaq 100 futures indicated a 0.01% downtick.

 
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