Europe open: Stocks rise as oil and metals prices firm up

European stocks rose in early trade, rebounding from losses in the previous session amid stronger oil and metals prices.

At 0900 BST, the benchmark Stoxx 600 index, Germany’s DAX and France’s CAC 40 were all 0.8% higher.

At the same time, oil prices were in the black. West Texas Intermediate was up 2.5% to $38.20 a barrel and Brent crude was up 1.9% to $40.18.

The Stoxx 600 oil and gas index rose 2% while the corresponding sub-index for basic resources was 2.1% firmer.

“European equities are trading little changed to moderately higher this morning showing early signs of a rebound after yesterday's sharp reversal,” said Markus Huber, a trader with broker City of London Markets.

“Little changed markets in Asia overnight and better than expected German export data are giving stocks an early lift this morning. However the main topic appears to remain global growth concerns with many continuing to keep a close eye on the price of oil. The fact that there is very little data schedule to be released today is likely to limit the potential upside for stocks.

“Furthermore with no major fundamental improvement what the global economy is concerned in sight, China seems to be the only major economy that might has bottomed, stocks will remain prone to profit-taking.”

Data released earlier by Destatis showed German exports rose 1.3% month-on-month in February following a 0.6% decline in January and better than economists’ expectations of a 0.5% increase.

Investor sentiment was also underpinned by comments from Federal Reserve chair Janet Yellen and her predecessors late on Thursday, who emphasised that rate hikes would be gradual.

In corporate news, Associated British Foods was a touch higher after agreeing to acquire the remaining stake in South African sugar producer Illovo Sugar it did not already own.

Air France-KLM flew higher after reporting a 4.6% jump in March passenger traffic.

AstraZeneca edged lower after saying that it and Eli Lilly have decided to continue a pivotal clinical trial for a potential treatment for early Alzheimer’s disease.

FTSE 250 company Tullow Oil was on the back foot after it confirmed damage to the turret bearing on a floating production storage and offloading (FPSO) unit at its Jubilee field in Ghana, but said this was unlikely to have a material impact on revenue.