Energy Shares Lead Sleepy European Markets
12 December 2016 - 8:40PM
Dow Jones News
A rally in oil prices sent shares of energy companies higher
Monday, after stocks posted their best week since the U.S.
election.
The Stoxx Europe 600 edged up 0.2% in the early minutes of
trading, after the pan-European index closed at its highest since
January. The energy sector led gains, up over 2%, while shares of
mining companies rose 1.6%.
The moves came as Brent crude oil jumped 4.6% to $58.84 a barrel
Monday morning, on track for its highest settlement since July
2015. The Organization of the Petroleum Exporting Countries and
non-OPEC countries struck a deal at the weekend to cut output in a
bid to reduce global oversupply, pledging to remove 558,000 barrels
a day of crude oil from the market.
Higher oil prices helped support Australia's commodity-heavy
S&P ASX 200 index. However, China's crackdown on stock
purchases by insurance companies sent shares in Shanghai and
Shenzhen sharply lower. Stocks in Shenzhen fell nearly 5%, while
the Shanghai Composite Index shed 2.5% and stocks in Hong Kong fell
1.5%.
Analysts said sentiment in Asia was also hurt by comments from
President-elect Donald Trump suggesting there might be a change in
the U.S.'s acceptance of the "one China" principle.
Despite losses in the region, Japan's Nikkei Stock Average
gained 0.8%, lifted by a weaker yen, which makes the country's
exports more competitive. The dollar was last up 0.5% against the
yen and flat against the euro.
In government bond markets, the 10-year U.S. Treasury yield rose
to 2.513% from 2.462% Friday, while German bund yields rose to
0.415% from 0.345%. Bond yields move inversely to prices.
Benchmark Italian bonds yielded 2.124%, up from 2.025% Friday,
after Italy's President Sergio Mattarella asked departing Foreign
Minister Paolo Gentiloni to form a new government.
--Benoit Faucon and Kenan Machado contributed to this
article
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
December 12, 2016 04:25 ET (09:25 GMT)
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