Europe open: Markets flat on oil cuts; Viaplay crashes

European shares made a muted start to the week as investors eyed the impact of rising oil prices after major producer Saudi Arabia said it would cut output, while shares in Viaplay crashed amid the departure of its CEO and an outlook downgrade.

The pan-regional Stoxx 600 was flat at the open on Monday, with most bourses higher, bar France’s CAC 40, which was down 0.15%. Britain’s mining-heavy FTSE 100 outperformed with a 0.38% rise.

Asian shares were higher, lifted by Friday's rally on the back of US payrolls data and a pickup in China's services activity in May.

Brent crude traded just below $77 a barrel. Saudi Arabia said it would cut production by a million barrels a day in July, while members of the OPEC+ cartel of oil states pledged to lower targets again next year.

“Oil prices are trapped in conflicting tides between production cuts on one hand, and concerns about demand as China’s recovery slows, while a recession in the US looms,” said Hargreaves Lansdown analyst Susannah Streeter.

“So, for now, this production cut is unlikely to show up in a dramatic way at the pumps.”

In equity news, shares in Viaplay crashed by almost two-thirds after the Swedish entertainment provider said CEO Anders Jensen had quit and the group downgraded its outlook for 2023.

Goldman Sachs Asset Management made a $600m bid for Norwegian aquaculture service group Froy, sending its shares higher by 4%. Novo Nordisk said it started talks to buy a controlling stake in French medical device designer Biocorp.

Elsewhere, UBS said it expected to complete its takeover of Credit Suisse "as early as June 12".

Reporting by Frank Prenesti for Sharecast.com