Shares in Europe remained mainly lower on the lack of economic reports from the euro zone and despite the surge of oil prices on the session on Tuesday.
Among the best performers in the session are those in the energy, mining and financial stocks. The EURO STOXX 500 lost 0.42 percent, while DAX 30 declined by 0.25 percent and the CAC 40 fell 0.42 percent.
In the mining sector, steel giant Arcelormittal surged by 5 percent as the consensus price target of the analysts rallied. Anglo American turned higher due to positive diamond sales from the company’s De Beers section.
French oil and gas major Total SA and the Italy’s ENI were some of the energy stocks which performed well. Statoil ASA rose as well with an increase of 0.63 percent. In the financial sector, Deutsche Bank jumped 0.46 percent, while Commerzbank went up to 0.76 percent. BNP Paribas and Societe Generale rallied for 0.87 percent and 1.01 percent respectively.
Additionally, Unicredit climbed by 2.93 percent, while Intesa Sanpaolo increased by 1.54 percent. Banco Santander and BVA added 0.83 percent and 0.92 percent respectively.
Elsewhere, Dow Jones Industrial Average futures went up 0.03 percent and the Nasdaq 100 futures rose 0.09 percent. S&P 500 futures soared 0.10 percent.
Although oil recovered from its previous losses, many analysts still believed that it will not land on a bullish trend nor will manage to maintain the recorded gains in the long run and it might settle around $35 per barrel instead.
“You don’t really want to see prices below $30 (a barrel), but you also don’t want them getting back up to $50 or $60 anytime soon, otherwise some of the U.S. shales producers will turn the taps back on,” an energy analyst said.
Oil futures hit its all time high in 2016 as the U.S. dollar slumped and as the demand in China was perceived to soar due to the increase of vehicle sales.
Brent had an intraday peak of $43.53 per barrel, the highest in 2016, before settling at 43.33 per barrel, an increase of 50 cents. Also, U.S. crude traded at $40.75 per barrel, up by 39 cents.
U.S. light crude has reached its 12-year low of $26.21 per barrel for this year, but oil prices have added above 50 percent since early February. Last week, the U.S. inventories surprisingly declined, which pushed the crude higher . The American Petroleum Institute is set to report later today and the numbers from the government will be disclosed the day after.
For the record, OPEC oil production went up for 3.23 million barrels per day in March as the market stayed focus on the OPEC meeting in Doha, Qatar this April 17.Publication source