Europe open: Shares up on strong Wall St; Crude prices fall sharply

European shares opened higher on Tuesday after another record close on Wall Street, while crude oil prices were down sharply after a report claimed Israel would strike at Iranian military installations not energy targets.

The pan-European Stoxx 600 index was up 0.26% at 526 points with most regional bourses higher. Crude prices were down 3.9% at $74 a barrel. Sentiment was also hit by a cut in demand forecasts by OPEC.

In the UK, hopes of an interest rate cut were raised after official data showed a decline in wage growth as employers continued to cut payrolls.

UK earnings growth fell to its lowest level for more than two years, in another sign that the jobs market was weakening as businesses cut the number of workers on payrolls, according to data published on Tuesday.

Average regular earnings growth came in at 4.9% in the three months to August, down from 5.1% in the previous quarter and the lowest since June 2022, the Office for National Statistics said.

Vacancies declined to 34,000 to 841,000 in the quarter to September while workers on UK payrolls also fell by 35,000 between July and August.

However, the unemployment rate declined unexpectedly to 4% in the three months to August, down from 4.1% in the previous quarter, though the ONS warned that a low response to its jobs survey meant the figure should be treated with caution.

In equity news, shares in Swedish telecom equipment maker Ericsson surged as the company reported core earnings and sales above expectations, boosted by demand for its 5G equipment in North America.

UK housebuilder Bellway jumped as it reported a brighter outlook, despite a 62% slump in annual profits.

Fintech money transfer platform Wise was also higher after reporting a 17% jump in second-quarter income after a strong rise in customer numbers.

Reporting by Frank Prenesti for Sharecast.com