Europe open: Stocks push higher despite oil slide; Ericsson, LVMH rally

European stocks rose in early trade, rebounding from last week’s heavy losses and showing some resilience amid a slide in oil prices and weak Asian markets.

At 0850 GMT, the benchmark Stoxx Europe 600 index was up 1%, while Germany’s DAX and France’s CAC 40 were up 0.9%.

“European markets are doing their best to shrug off yet another negative session in Asia, as investors attempt to gauge whether or not the market has reached a good buying point,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“China, global growth and the oil market continue to cause concern and the market remains highly nervous, but at some point momentum may turn as active investors attempt to catch the bottom.”

She added that while the lifting of sanctions in Iran was well flagged, the prospect of additional supply from Iran has seen oil prices slide further alongside a parallel fall in equity markets across the Middle East.

“With oil supply remaining in huge excess to demand, it is difficult to see what will cause the market to reach equilibrium so that prices can stabilise.”

West Texas Intermediate was down 1.7% to $28.92 a barrel while Brent crude was 1.9% lower at $28.40.

On the corporate front, plumbing and heating firm Wolseley was in the black after announcing the retirement of chief executive officer Ian Meakins, who will be replaced by chief financial officer John Martin.

Ratings changes also lent a helping hand, with Ericsson up after Nordea Markets lifted the stock to ‘buy’, and LVMH higher after an upgrade by Goldman Sachs.

On the downside, French supermarket operator Casino dropped after ratings agency Standard & Poor's said it might downgrade its debt to junk status.

Meanwhile, French car maker Renault was in focus as executives from the company prepared to appear before a government commission to explain why some of its cars exceeded emissions limits.