European stocks closed higher on Tuesday after a weak start as shares of oil companies rose on the back of rebounding oil prices. The Stoxx Europe 600 rose 0.4%. Advances in oil companies underpinned the market. Shares of Tullow Oil PLC jumped 18% on the news a new project with a partner company in Ghana is planned to start producing oil in 2016. Shares of BP PLC rallied 3.9%, France’s Total SA gained 3.6% and Royal Dutch Shell PLC rose 2.9%. Germany’s DAX 30 ended flat at 10,951.15 as shares of Volkswagen fell 1.5% after US Environmental Protection Agency said it was now looking at 3.0-litre V6 diesel engines in some Volkswagen, Audi and Porsche vehicles. Banking sector shares were subdued after release of weak earnings from Standard Chartered and UBS. Today from 9:45 -10:00 CET final readings of October Services and Composite PMIs for France, Germany and euro-zone will be released. The tentative outlook is neutral. At 11:00 CET September Producer Price Index will be released in euro-zone. The tentative outlook is negative. At 10:00 CET European Central Bank president Mario Draghi delivers opening remarks at the ECB Forum on Banking Supervision, in Frankfurt.
Nikkei rose 1.3% today as risk appetite returned with gains on Wall Street and a successful $12 billion initial public offering of three Japan Post shares. Shares of group parent company Japan Post Holdings closed 20% higher than the initial public offering price. Exporters rose also with Honda Motor gaining 1.9% and Nissan Motor rallying 2.6%.
Oil futures quotes are sliding today on profit taking after solid gains on Tuesday on concerns over supply disruptions in Libya and Brazil. December Brent crude rose 3.6% to settle at $50.54 a barrel. Traders are waiting for official inventory data from the US Energy Information Administration at 16:30 CET today.
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