Europe open: Stocks in the black as corporate news provides some cheer

European stocks edged higher in early trade, taking their cue from a positive session on Wall Street as well-received corporate news helped to underpin the mood.

At 0855 GMT, the benchmark Stoxx Europe 600 index and Germany’s DAX were 0.5% firmer, while France’s CAC 40 was up 0.6%.

Oil prices were back in the red. On Tuesday, Russia, Saudi Arabia, Venezuela and Qatar agreed to freeze oil output at January levels. Market participants who had been expecting a production cut were left disappointed by the freeze and the fact the deal is contingent on Iran agreeing to it.

West Texas Intermediate was down 0.7% at $28.85 a barrel while Brent crude was 0.7% lower at $31.96.

Despite upbeat tone, some analysts were wary.

“With the chances of a solid agreement to limit oil supply looking shaky at best, the recent bounce on the commodity as well as wider equity markets looks fragile. Anyone thinking that markets have bottomed out could be in for a rude awakening. The VIX (Volatility index) remains on an upward trajectory so investors may be well advised to remain focused on safe havens,” said Mike McCudden, head of derivatives at stockbroker Interactive Investor.

On the corporate front, French bank Credit Agricole advanced after outlining plans to simplify its ownership structure.

Schneider Electric was also on the front foot. Although the company posted a drop in 2015 profit, it also announced that it would speed up its share buyback programme.

Glencore rallied after it secured early refinancing of a $8.45bn loan facility.

AstraZeneca nudged higher after announcing that it has won fast-track US regulatory approval for a particular application of its most promising cancer drug, Durvalumab.

Sainsbury’s was higher after Exane BNP Paribas upgraded the stock to ‘outperform’ from ‘neutral’.

On the downside, ABN Amro lost ground after its fourth quarter profit missed expectations.

There are no major Eurozone data due, so eyes will be on the US, where housing starts and building permits are at 1330 GMT. Industrial production is at 1415 GMT, while the latest Federal Open Market Committee minutes are due after the European close at 1900 GMT.