European shares gain on higher oil stocks and amid company earnings optimism

European shares are higher Tuesday, boosted by oil stocks amid rising oil prices.

European shares gain on higher oil stocks and amid company earnings optimism

European shares are trading in the green Tuesday, led by oil stocks amid higher oil prices. In addition, investors are looking towards the next company earnings season with some optimism over possible results.

By 1315 BST, the EUROSTOXX 600 was 0.41% higher, while the EUROSTOXX 50 had gained 0.33%. Regional bourses were broadly higher too. The German DAX was up 0.44% and the French CAC rose 0.52%, however, the Spanish IBEX declined 0.25%.

Oil stocks rise

Rising oil stocks are helping to lift the indices Tuesday. The gains come as a strike by Norwegian oil workers and the subsequent shut down of a Shell oil field, has helped support oil prices and push them higher.

The strike action is exacerbating the upward pressure on oil prices after a drop in US inventories last week to a three-and-a-half year low, was already helping to lift them.

Oil stocks which are in positive territory include:

  • Total shares up 0.95% at €54.69.
  • Eni shares gained 1.63% to hit €16.58.
  • Lundim Petroleum shares are 2.02% higher at SEK29750.
  • Royal Dutch Shell shares rose 0.76% to £2,777.

Also helping to lift the European stock market are expectations among investors tat the next earnings season could prove positive for their investments.

Analysts say that positive outlook follows the upbeat US jobs report last week as they gear up to read through all the details that accompany business earnings updates.

Other stock movers

Aside from the upbeat oil stocks, there have been other stock movers of note.

Among them are VW shares which are 0.76% lower at €143.20, after a US court upheld its settlement charge for US owners of vehicles affected by the emissions scandal.

BMW shares, meanwhile, are also lower after news the German carmaker is set to team up with Baidu on self-driving tech. BMW shares lost 0.31% to hit €79.96.

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