Europe open: Stocks nudge higher as oil gains ground

European stocks nudged up in early trade, taking their cue from a positive session in Asia as oil prices continued to gain ground.

At 0845 BST, the benchmark Stoxx Europe 600 index was up 0.1%, Germany’s DAX was 0.3% higher and France’s CAC 40 was 0.2% firmer.

At the same time, oil prices continued to advance on the prospect of Saudi Arabia and Russia agreeing a supply cut. West Texas Intermediate was up 2% at $45.33 a barrel and Brent crude was 0.3% higher at $47.77.

Oanda’s Craig Erlam said: “With the worst of the quiet summer period now behind us and US traders returning from the bank holiday weekend, we can expect to see trading volumes pick up significantly this week, just in time for a number of key central bank events.

“Between BoE Governor Mark Carney’s appearance before the Treasury Select Committee on Wednesday, the Bank of Canada decision shortly after and the ECB on Thursday, we’re certainly not short of market moving events this week.”

On the corporate front, Fresenius gained after the healthcare provider said it will buy Spain’s largest private hospital company, Quironsalud, for $6.42bn.

Berkeley Group racked up healthy gains as the housebuilder and property developer said the market had returned to pre-Brexit levels in August following a hiatus either side of the EU referendum.

Low-cost carrier EasyJet flew higher after saying passenger numbers grew 6.4% in August from the same month last year to 7.51m, while the load factor edged up to 94.9% from 94.4%.

On the downside, Bayer slipped after the German chemical company sweetened its bid for US-based Monsanto to $127.50 per share from $125 in July.

Dutch financial services company Aegon was also in the red after saying chief financial officer Darryl Button is stepping down from the role.

Shares in French payments processor Ingenico tumbled after it downgraded its sales and profit forecasts for the year.

In macroeconomic news, figures from Destatis showed new manufacturing in orders in Germany rose less than expected in July. Orders were up 0.2% on the month following a 0.3% decline in June. Economists had been expecting a 0.5% jump.

Still to come, the final release of second-quarter eurozone gross domestic product is at 1000 BST. In the US, Markit’s services purchasing managers’ index is at 1445 BST while ISM non-manufacturing is at 1500 BST.