Oil rise boosts markets across Europe
Published 12/08/2016 | 02:30
European markets rose yesterday after better than expected results for Zurich Insurance and KBC Group, along with a rise in oil prices, sent prices to pre-Brexit levels.
Zurich gained 4.5pc after the company's results revealed losses that were lower than expected. KBC shares were up by 5pc.
The UK's FTSE 100 index reversed an earlier decline to rise 0.6pc, with Royal Dutch Shell recovering as oil prices gained. Property-related companies dropped after a survey revealed UK house prices had fallen in July.
Germany's DAX advanced 0.7pc with Henkel and RWE leading the way. Siemens rose to its highest price since 2007. France's CAC index added 1.2pc.
In Dublin, the ISEQ overall index of Irish shares was up by 1.36pc to close at 5989.75. Paddy Power Betfair shares gained 1.4pc, while Ryanair was up by 1.8pc. Glanbia shares rose by 3pc and Smurfit Kappa improved by 2.4pc. The day's laggards were Wireless Group, who lost 3.5pc, and software firm Datalex whose shares were down 2.9pc.
On the commodities exchanges, oil prices were boosted by a statement from the Saudi oil minister which intimated the kingdom was planning a meeting aimed at stabilising prices.
And the International Energy Agency (IEA), which advises large developed economies on energy policy, forecast a healthy draw in global oil stocks in the next few months that would help ease a glut that has persisted since 2014 on the back of rising OPEC and non-OPEC supply.
"Oil's drop ... has put the 'glut' back into the headlines even though our balances show essentially no oversupply during the second half of the year," the Paris-based IEA said in its monthly report.