Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Oil stocks push European bourses higher, SOBI leads gains

Stock MarketsSep 02, 2021 12:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany August 30, 2021. REUTERS/Staff

By Sruthi Shankar and Ambar Warrick

(Reuters) -European shares closed higher on Thursday as expectations of improving economic growth supported oil stocks, while drugmaker Swedish Orphan Biovitrum (SOBI) was the top performer on the STOXX 600 after accepting an $8 billion takeover offer.

The pan-European STOXX 600 index rose 0.3%, with oil stocks adding 1.8% as crude prices surged on optimism over an economic recovery, a sharp decline in U.S. crude stocks and a weaker dollar. [O/R]

SOBI surged 25.8% to the top of the STOXX 600 after it agreed to a takeover by U.S. private equity firm Advent International and Singapore's sovereign wealth fund GIC.

Travel and leisure stocks rose 0.8% as they recovered from a recent sell-off on concerns over the Delta variant of the coronavirus, while automakers gained 0.3%.

But German luxury carmaker Daimler fell 0.6% after it warned of significantly lower third-quarter sales at its Mercedes unit due to a global semiconductor shortage.

Economy-sensitive industrial goods & services, and the chemical and construction and materials sectors, which were all trading near record highs, rose between 0.3% and 0.6%.

"We find value stocks quite exciting; a lot of the stocks are quite cheap," said Aaron Barnfather, European equities portfolio manager at Lazard Asset Management.

"But we are quite concerned that expensive stocks...are very vulnerable to any shift in the environment, particularly if we were to see bond yields starting to rise."

The European stocks benchmark is trading just a few points below all-time highs, with investors holding off on big bets ahead of U.S. jobs data on Friday that could influence the Federal Reserve's thinking on policy tightening.

The European Central Bank is set to meet next week, with some of the more hawkish members recently calling on the ECB to pare back its pandemic-era bond purchases.

While strong earnings and a relatively high rate of coronavirus vaccinations have supported a European economic recovery, investors are wary that tighter monetary conditions and rising inflation could result in choppier market conditions through the rest of this year.

The STOXX 600 is projected to end 2021 around current levels.

Miner BHP Group fell 5.6% on ex-dividend trading, weighing on the UK's blue-chip FTSE 100, which rose 0.2%. (L)

Polish videogame maker CD Projekt rose 11.5% as its first-half results blew past estimates on strong sales of its flagship games "Cyberpunk 2077" and "The Witcher 3: Wild Hunt".

British engineering firm Melrose Industries gained 7.2% as it reported a first-half profit.

Oil stocks push European bourses higher, SOBI leads gains

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email