Europe open: Shares edge ahead as RBA holds rates; Eyes on EZ PP

European shares were up at the open on Tuesday, with oil stocks still gaining after surprise output cuts by OPEC and other countries and investors waited for eurozone producer price data.

The pan-European Stoxx 600 index was up 0.23% at 0730 GMT with all major bourses higher after a muted day on Monday as the oil price spike stoked renewed fears of inflation.

Sentiment was also boosted after the Reserve Bank of Australia decided to pause rate hikes after 10 consecutive rises.

“The surprise production cut from OPEC+ continues to stoke concerns around inflation, with brent crude trading over $85 a barrel. There are some outside concerns this could encroach on the $100 mark once more, which would have legitimate ramifications for monetary policy and has already led to a reduction in short positions in oil,” said Hargreaves Lansdown equity analyst Sophie Lund-Yates.

In equity news, L'Oreal shares edged ahead after the cosmetics group struck a deal with Brazil's Natura & Co to buy Aesop, its Australian luxury brand, at an enterprise value of $2.53bn.

Bayer was up after a Delaware judge dismissed Merck's lawsuit seeking to hold Bayer responsible for more talc-related liabilities stemming from its purchase of Merck's consumer care business in 2014.

Reporting by Frank Prenesti for Sharecast.com