US, WASHINGTON (ORDO NEWS) — European stock markets soared on Friday, helped by sharp increases in the energy sector after the rebound in oil prices.
At 11:30 am, the British FTSE index was up 2.7%, the French CAC 40 rose 5.6% and the German DAX 4.8%. The pan-European Euro Stoxx 50 index rose 5.1%.
In addition, US crude futures rose 7.4% to $ 27.82 a barrel, after rising 24% on Thursday. The Brent international benchmark contract rose 6.3% to $ 30.27, after surging 14.4% on Thursday, its largest gain in a day since September.
This resulted in significant gains in the oil and gas sector, a part of the market that was hit hard by the collapse in crude prices.
The shares of the British oil giant BP (LON: BP ) rose by 7.6%, the shares of the Anglo-Dutch producer Royal Dutch Shell (LON: RDSa ) rose by 7%, Total (PA: TOTF ) in France a increased by 7.6% and Repsol (MC: REP ) (MC: REP ) in Spain by 5.5%.
These movements were observed following the suggestion of US President Donald Trump to intervene in the price war between Saudi Arabia and Russia at a “convenient time”.
US crude and Brent have both collapsed by around 40% in the past two weeks following the breakdown of negotiations between the Organization of the Petroleum Exporting Countries and its allies, including Russia, which has resulted in an increase in supply from Saudi Arabia.
However, as market players take stock of the many and varied plans to stimulate the world economy in the light of the destruction caused by the coronavirus pandemic, Deutsche Bank (DE: DBKGn ) has pointed out that times remain difficult.
The German bank warned on Friday that the impact of the coronavirus epidemic could affect its ability to reach its financial goals. It is the first time that the largest German lender has raised the alarm about the epidemic.
Also in Germany, Siemens (SIX: SIEGn ) has confirmed that it has 57 confirmed cases of Covid-19 in its workforce.
There are not many economic indicators in Europe on Thursday, although the publication of the Bank of England quarterly bulletin at 1 p.m. may be interesting given the surprise drop in central bank interest rates on Thursday.
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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.