Europe: Oil gains lift shares, Stoxx index holds just off record high

[BENGALURU] European shares rose on Wednesday, as energy stocks tracked a jump in oil prices, while investors turned to a Federal Reserve meeting for cues on whether the central bank was beginning to debate tapering its ultra easy monetary policy.

The pan-European Stoxx 600 was up 0.3 per cent by 7.04am GMT.

If gains hold until the end of the day, the index will mark its longest gaining streak in three-and-a-half years.

The benchmark index has scaled record highs this year as investors bet a steady vaccination programme would jumpstart economic growth, but a recent jump in inflation has sparked concerns of a sooner-than-expected tightening in global monetary policy.

Data on Wednesday showed British inflation unexpectedly jumped above the Bank of England's 2 per cent target in May and looked set to rise further as the country reopens its economy from coronavirus-induced lockdowns.

Still, London's commodity-heavy FTSE 100 rose 0.3 per cent with oil majors BP and Shell tracking a jump in Brent crude to its highest since April 2019.

The European energy stock index added 0.6 per cent.

In company news, EverArc Holdings jumped 8 per cent as it said it would buy firefighting products and lubricant additives manufacturer Perimeter Solutions in a deal valued at about US$2 billion.

SAP shares fell 1.2 per cent, hit possibly by a disappointing profit forecast from US software rival Oracle.

REUTERS