PARIS (Reuters) – The main European stock markets are moving up moderately at the start of the session on Monday, with companies in the oil sector taking advantage of the sharp rise in crude prices after the OPEC+ decision to cut production.
In Paris, the CAC 40 gained 0.33% to 7,346.65 points at 07:47 GMT. In London, the FTSE 100 took 0.58% and in Frankfurt, the Dax fell 0.03%.
The EuroStoxx 50 index is up 0.13%, the FTSEurofirst 300 0.08% and the Stoxx 600 0.11%.
The latter took 0.7% on Friday thanks to the ebb of fears about the banking sector and the slowdown in US inflation and in the euro zone.
But price uncertainties are resurfacing following OPEC+’s unexpected decision to cut oil production, sending crude prices soaring and increasing the likelihood that central banks will maintain tight policy for longer.
“Whatever the political and geopolitical motivations, the timing and magnitude of the production quota cuts announced by OPEC dominate the first session of April and the second quarter,” commented analysts from Societe Generale in a note. .
“Investors immediately draw conclusions about rising inflation and the complications this could cause for central banks in their fight against inflation,” they add.
The barrel of Brent gained 5.36% to 84.17 dollars that of American light crude 5.39% to 79.75 dollars.
The energy sector benefits from this rebound and takes 3.68%. Shell, BP and TotalEnergies advance from 3.9% to 4.34%.
Conversely, air transport stocks are penalized: Ryanair loses 2.82% and Air France-KLM 1%.
(Laetitia Volga, editing by Kate Entringer)
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