Europe open: Stocks in the black as oil prices rally

European stocks edged higher in early trade following on from a positive session in Asia, as oil prices rallied.

At 0900 GMT, the benchmark Stoxx Europe 600 index was up 0.7%, Germany’s DAX was 0.2% higher and France’s CAC 40 was up 0.8%.

“A three day rally isn't usually cause for celebration, but as European equity markets rise again and oil extends gains to over 16% in a week, the panic that reigned last Thursday seems a distant memory. While some may argue that this is a technical bounce and that it provides an opportunity to sell, there appears to be a more pronounced shift in positive sentiment,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“Mario Draghi lived up to his superhero billing yesterday, by yet again calming markets and promising action if necessary. With Premier Li also confirming decisive action in China amid anticipation that new projects and policies will improve prospects for the region, investor confidence is returning that central banks and policymakers will do whatever it takes to support markets.”

Oil prices rose sharply, as investors hoped that a meeting between oil ministers from Saudi Arabia, Russia, Qatar and Venezuela would prompt a production cut.

The oil ministers are meeting in Doha, Qatar, and are expected to hold a press conference once talks have finished.

West Texas Intermediate was 5.5% higher at $31.06 a barrel and Brent crude gained 6% to $35.38, helping to push the Stoxx 600 oil and gas index up 2.9%.

On the corporate front, Anglo American was higher after it reported a pre-tax loss of $5.5bn after $3.8bn of write-downs since the half year, as it unveiled its promised “radical” overhaul of the business to combat crumbling commodity prices.

HeidelbergCement was on the front foot after lifting its savings target by a third to €400m.

Michelin racked up gains after the tire maker reported a 19% jump in full year earnings.

Orange also gained after the French telecoms group said it returned to core profit growth in 2015 a year ahead of plan.

On the downside, Standard Chartered was under the cosh after Investec downgraded the stock to ‘hold’ from ‘buy’.

Vodafone nudged lower after announcing that it has agreed with Liberty Global to merge the companies’ operations in the Netherlands.

Still to come on the macroeconomic calendar, the German ZEW survey is at 1000 GMT. In the US, Empire manufacturing is at 1330 GMT while the NAHB housing market index is at 1500 GMT.