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Europe: Stocks rise helped by oil stocks; Deutsche Bank rebounds
[LONDON] European shares rose on Monday, reversing earlier weakness as oil stocks rallied on the back of stronger crude prices.
The pan-European STOXX 600 index rose 0.7 per cent, rising for the first time in four sessions days.
The STOXX Oil index rose 1.9 per cent, making it the biggest gainer, as Brent crude prices rose to their highest in a year after Russia said it was ready to join a proposed deal to cap oil production in a bid to stem a price slide.
Shares in oil majors Royal Dutch Shell, Total and Eni all rose by more than 2 per cent.
Deutsche Bank rose 3.4 per cent, reversing earlier losses after Austria's finance minister Hans Schelling said he believed the German lender's problems could be resolved without collateral damage.
However some investors were cautious on the stock, which fell as much as 3.7 per cent earlier in the session due to disappointment at a lack of progress in the company's battle against a demand by US authorities for up to US$14 billion over misselling allegations.
"I would still steer clear of Deutsche Bank. They were never going to sort out the US issues that quickly, and whatever happens, I still think they will need to have a rights issue,"said Terry Torrison, managing director at Monaco-based McLaren Securities. The stock is down around 50 per cent so far in 2016.
Shares in William Hill climbed 2.8 per cent after the British gambling company said it was in merger talks with Canadian online peer Amaya.
EasyJet, which issued a profit warning last week, fell 2.3 per cent after SocGen cut its rating on the stock to"sell" from "hold".
Some traders said equities remained their favoured asset class, since record low interest rates in the euro zone and Britain had hit returns on bonds and cash, driving investors to the better returns on offer from the stock market.
"My view remains to buy the dip with interest rates remaining at these low levels," said Lex Van Dam, hedge fund manager at Hampstead Capital LLP.