LONDON — Stocks across Europe popped on Monday, with energy companies rallying on the back of strong oil prices.
Both Brent and WTI oil — the two most-watched benchmarks — popped after data pointed to moderating output in the USA. That should help recalibrate the supply/demand imbalance that has kept oil prices subdued for nearly three years.
At 4.50 p.m. BST (11.50 a.m. ET), US WTI crude is 1.5% higher at $US46.77 per barrel.
All major continental bourses climbed more than 1% during trade on Monday, while Britain’s FTSE 100 wasn’t far away, gaining 0.89% to close at 7,377 points.
The FTSE’s gains were driven by major mining and commodity companies, which took heart from oil’s performance. The three biggest gainers on the index — Glencore, Rio Tinto, and Anglo American — picked up by 5%, 4.1%, and 4% respectively.
Elsewhere, European indexes were helped by energy stocks, as well as banking and financial stocks. Germany’s DAX, for instance, saw its two biggest banks, Deutsche Bank and Commerzbank, top the leaderboard.
You can see the Europe-wide scoreboard below:
European stocks also got a boost from a solid set of PMI data from IHS Markit, which showed the continent’s manufacturing sector holding at close to six-year highs.
“Eurozone manufacturing growth gained further momentum in June, rounding off the best quarter for just over six years,” Chris Williamson, Chief Business Economist at IHS Markit said.
Across the Atlantic, oil’s rally helped push the Dow Jones Industrial Average to an all-time high of 21548.84 early in trade. It has since moderated a little from those highs.
Get the latest Oil WTI price here.