European Stocks Rally Ahead of OPEC


On Wednesday, European stocks opened higher as investors concentrate on a highly-expected meeting of major oil producers set later in the day.

For the period of European morning trade, the EURO STOXX 50 increased 1.11 percent, France’s  CAC 40 advanced 1.03%, whereas Germany’s DAX 30  jumped 0.99%.

After reports on Tuesday, markets were anxious that differences between Saudi Arabia and Iran stayed too wide to attain an output freeze deal this week.

However, energy related stocks were generally higher, as French oil and gas major Total SA (PA:TOTF) jumped 0.91% and Italy’s ENI (MI:ENI) advanced 0.73 percent, while Norwegian rival Statoil (OL:STL) also increased 0.73%.

Global stocks were also supported as market sentiment  stayed positive after  analysts considered that Hillary Clinton did better than her competitor Donald Trump during Monday night’s Presidential debate.

Markets have a tendency  to see Clinton as a status quo candidate, although few are sure what a Trump presidency might mean for international trade deals or the U.S. economy.

Financial stocks were generally higher, as French lenders BNP Paribas (PA: BNPP) and Societe Generale (PA: SOGN) increased 0.70% and 1.24%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) increased 0.89% and 2.19%.

Amongst peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) advanced 0.92 percent and 1.08 percent, respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) increase 0.81% and 0.85%.

Somewhere else, shares in Allianz (DE:ALVG) increased 1.13% following reports the German insurer is exploring choices for the partial or total sale of regional private bank Oldenburgische Landesbank AG.

In London, FTSE 100 advanced 0.70%, led bu Tui AG NA (LON:TUIT), whose shares increased 2.95 percent after the travel company stated, it is confident of delivering between 12% and 13% development in underlying earnings before interest for the twelve months ending 30 September 2016.

Smiths Group (LON: SMIN) added to gains, with shares rallying 2.88% after the group said pretax profit increased 6.5% in the year to the end of July.

Mining stocks were also higher in the commodity-heavy index. Shares in Glencore (LON:GLEN) climbed 0.54% and BHP Billiton (LON:BLT) jumped 1.58%, while Rio Tinto (LON:RIO) and Anglo American (LON: AAL) increased 1.73% and 1.92% respectively.

In the financial sector, stocks were mostly on the upside, as Lloyds Banking (LON:LLOY) increased 0.62% and Barclays (LON: BARC) increased 0.84%, while the Royal Bank of Scotland (LON:RBS) increased 1.37%. HSBC Holdings (LON: HSBA)  underachieved however, with shares shedding 0.22%.

In the U.S., equity markets directed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.16% increase, S&P 500 futures indicated a 0.17% increase, while the Nasdaq 100 futures show a 0.18% increase.

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