European Stocks Rise for Fifth Day as Energy Shares Reverse DropAlan Soughley and Inyoung Hwang
A rebound in oil-and-gas companies pushed European stocks higher for a fifth day.
Energy companies were among the best performers as oil rose on speculation that the return of Iranian crude to the market will be gradual following an agreement with world powers on the country’s nuclear program. Seadrill Ltd. jumped 8.8 percent and Statoil ASA climbed 3.5 percent.
The Stoxx Europe 600 Index added 0.5 percent to 398.3 at the close of trading, after earlier falling as much as 0.4 percent. The equity gauge has risen 6.9 percent over the past five sessions, its biggest such rally since 2011.
After Greece and its creditors reached an agreement yesterday paving the way for a new bailout, the focus is now turning to Wednesday’s parliamentary vote on the plan.
Benchmark stock gauges of Portugal and Italy, among those hit the hardest during the selloff, posted the biggest declines of 18 western-European markets today, after leading the rebound through Monday.
The Stoxx 600 fell almost 10 percent from an April record through July 7 amid uncertainty over Greece’s fate, before rebounding amid optimism for a deal. It is still down 3.8 percent from its April record. On Tuesday, the volume of its shares changing hands was 22 percent lower than the 30-day average.
Kuehne & Nagel International AG rose 2.2 percent after the sea-freight forwarder posted higher-than-expected second-quarter earnings.
A gauge of auto-related companies posted the worst performance of the 19 industry groups on the Stoxx 600. BMW AG dropped after its Chinese joint-venture partner forecast first-half net income to fall about 40 percent amid slowing demand for premium cars in the world’s largest auto market. PSA Peugeot Citroen slipped 2.1 percent and Volkswagen AG lost 2.4 percent.
Skandinaviska Enskilda Banken AB fell 2.2 percent after posting second-quarter net interest income that missed analysts’ estimates.
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