European markets close in green, fuelled by oil prices

Wednesday, 27. January 2016 18:36

European markets closed higher, with modest gains and losses alike. The investors were trading carefully in an anticipation of the U.S. Federal Reserve decision on the basic interest rate, and were encouraged by a strong rise of oil prices.

German DAX index finished the day up 0.59% at 9,880. Among the day’s winners were Fresenius Medical Services +4.17%, Deutsche Börse +3.36%, E.ON energy corporation +2.86%, and Deutsche Telekom AG +1.64%. On the losing side were Siemens AG conglomerate -2.35%, and industrial giant ThyssenKrupp -2.12%.

French CAC 40 index added 0.54% closing at 4,380. Railway transportation corporation Alstom recovered 3.42% after several days of losses, Publicis Groupe SA rose 3.18%, and the two telecom companies gained despite unfinished deal for Orange SA (+2.77%) to acquire Bouygues Telecom by (+1.86%). Airbus Group lost 3.41% despite good ratings from the agencies and announcement of the new deal with the European Space Agency to deliver two further optical Sentinel satellites worth €285 million.

In Zürich, the SMI index rose 0.10% to close at 8,322. The Transocean Ltd. jumped 3.06% after a hedge fund divested from the offshore drilling contractor. The country’s third biggest wealth manager Julius Baer Group Ltd. added 2.25%. Pharmaceutical giant Novartis dropped 3.71% after reporting lower sales and net profit.

London’s FTSE 100 closed 1.33% up at 5,990. Sage Group rose 4.35%, and Glencore added 5.66%. The Royal Bank of Scotland Group lost 1.99% after announcing a profit of £2.5 billion but shaved off by £500 million for PPI claims and another £1.5 billion for the U.S. mortgage-related litigation.

The pan-European EuroStoxx 50 index ended up 0.35%, while the Stoxx 50closed 0.37% higher.

The oil prices jumped late in the trading day, and the trend continued after close. North Sea benchmark Brent rocketed 6.39% at $37.14 a barrel, and the American sweet crude WTI rose 5.08% at $38.51 a barrel at 6:15 p.m. CET.

The euro strengthened 0.05% against the U.S. dollar, added 0.77% against the U.K. pound, and rose 0.20% against the Swiss franc by 6:35 p.m. CET.

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