Europe open: Stocks push higher as Deutsche Bank recovers
European stocks rose in early trade, boosted by solid gains in the banking sector as Deutsche Bank recovered from recent losses.
At 0900 BST, the benchmark Stoxx Europe 600 index, Germany’s DAX and France’s CAC 40 were all up 1%.
Meanwhile, oil prices were a touch higher, with West Texas Intermediate up 0.3% to $44.79 a barrel and Brent crude up 0.4% to $46.15.
Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor, said: “European equity markets are positive, following oil prices higher, as investors eye Algiers in the hope that today's OPEC meeting will reach some compromise. Although an agreement to curb output today would be a major surprise, the debate may pave the way for a potential deal at their next meeting.
“Although all oil producing nations want a curb in output to push oil prices higher, the oil price at which Saudi Arabia's government finances will balance is significantly higher than that of Iran, making it much easier for Iran to play hardball and simply reiterate their demands to return to pre-sanction output levels, implicitly forcing Saudi Arabia to take the potential hit in terms of lower output.”
A recovery in Deutsche Bank shares helped to underpin the tone following two days of heavy losses, after chief executive John Cryan reassured investors that the bank had not asked for state aid to help settle a $14bn fine from the US Department of Justice over the mis-selling of mortgage-backed securities.
The Stoxx 600 banks index was up 1.2%.
The recovery also came as the bank’s wholly-owned subsidiary Deutsche Holdings agreed to sell Abbey Life to Phoenix Group for £935m in cash.
Royal Bank of Scotland was in the black after it agreed to pay $1.1bn (£846) to settle two legal claims that it allegedly mis-sold mortgage securities in the run-up to the 2008 financial crisis.
Deutsche Post edged higher after announcing an agreement to buy integrated mail and parcel operator UK Mail Group for 440p per share, valuing the company at £242.7m.
TUI rallied after the travel firm upped its 2015/2016 profit guidance.