Europe open: Shares up as Saudis quash oil output rise report

European shares edged ahead at the open on Tuesday as investors continued to fret about rising Covid cases in China that could lead to strict lockdowns, but energy stocks rose as Saudi Arabia dismissed a report that it was planning a rise in output.

The pan-European Stoxx 600 index rose 0.08% at 0845 GMT. Regional markets were mixed and the oil recovered from a slump on Monday after Saudi Arabia denied reports it was discussing an output hike with OPEC and its allies.

Energy, oil & gas stocks were back in demand on the news. Uniper, BP, Repsol, TotalEnergie, Galp Energia, Shell and Aker were all higher.

In economic news, UK October public sector net borrowing came in lower than expected at £13.5bn compared with £17.7bn last month and well below forecasts of £22bn on higher tax receipts.

On the stocks front, TAG Immobilien slumped 12% as the German property company suspended its dividend as it tried to strengthen its balance sheet.

Enel rose as the Italian utility company said its planned asset sales worth €21bn to cut net debt and focus its presence in six core countries.

Prosus slid after the Dutch tech investor said it expects interim earnings to have dropped by at least 79.9% from the same period last year.

Thyssenkrupp fell after activist investor Cevian cut its stake in the steelmaker.

Reporting by Frank Prenesti for Sharecast.com