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European shares are higher, boosted by commodity stocks as the price of oil rises

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European shares are higher Tuesday, as commodity stocks make gains on the higher oil price and news $1 billion share buyback by Glencore. Meanwhile, sentiment is also upbeat ahead of the US Fed meeting later, which is expected to result in a 25-basis points rate hike.

By 1300 BST, the EUROSTOXX 600 was up 0.44%, while the EUROSTOXX 50 had gained 0.30%. Meanwhile, the German DAX rose 0.27%, the French CAC was 0.20% in positive territory and the Spanish IBEX was 0.06% in the green.

Higher oil prices

The Brent crude oil price surpassed $82 per barrel for the first time in four years, amid supply constraint fears. That move gave oil-related stocks in particular, a boost, with oil majors reaping the rewards on the back of potentially higher profits.

However, some analysts have already begun to warn that if the oil price surpasses $100 per barrel, then demand will likely drop off, sharply. Gainers related to this news include:

  • Total shares rising 1.46% to €55.69.
  • BP shares rose 2.07% to £581.90.
  • Shell prices were up 2.06% at €29.54.

Also adding to the more positive tone, was the upcoming US Federal Reserve meeting later Tuesday, at which its widely expected a 25-basis point rate hike will be announced.

Stock movers

There were some other notable stock movers, Tuesday, amid a variety of company news.

Novartis shares rose 1.12% to €82.72 after announcing some 21,550 job cuts across its Swiss and UK operations. The move is part of its global restructure, which began in 2016 and come as the drugs maker is switching its focus to developing new and specialist drugs.

The performance of Next shares is also working to drive the broader indices higher, rising 9.45% to £5,608. The strong upward move followed an upbeat interim sales report from the UK retailer and an increase in its forward guidance, too.

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