Europe open: Stocks waver as energy issues gain but resources slip

European stocks wavered in early trade as strength in the energy sector was offset by weakness in basic resources.

At 0855 GMT, the benchmark Stoxx Europe 600 index was flat, Germany’s DAX was 0.1% lower and France’s CAC 40 was 0.3% higher.

Meanwhile, oil prices rose, with West Texas Intermediate up 2.4% to $44.34 a barrel and Brent crude up 1.9% to $45.29. This helped to push the Stoxx 600 oil and gas index up 1.4%.

Accendo Markets analysts Mike van Dulken and Henry Croft said: “Crude Oil prices have bounced since the European close last night as OPEC producers ramp up negotiations for a production cut with only a fortnight to go until the group’s official meeting in Vienna.

“A push from Algeria, Qatar and Venezuela to settle disagreements between heavyweight producers Saudi Arabia, Iran and Iraq has helped investor confidence. However, will this short term boon be quickly overshadowed by renewed conflict between the notoriously argumentative cartel?”

However, the sub-index for basic resources slumped 3% as copper prices fell nearly 2%.

In corporate news, budget airline EasyJet flew a little lower as it reported a 27.9% drop in full-year profit to £495m that was in line with the guidance it gave in October, as it took a hit from terrorist attacks and as the UK’s decision to leave the European Union made the euro more expensive for British travellers over the summer.

Nokia slid after it reported that net sales in its key networks business were set to drop in full-year 2017.

Elsewhere, Societe Generale declined following reports that France’s finance ministry has kicked off a process to recoup €2.2bn worth of tax deductions the bank received after losses caused by rogue trader Jerome Kerviel.

On the upside, Vodafone pushed up after better-than-expected first-half results, while Land Securities rallied after reporting a 4.5% jump in first-half revenue profit to £192.5m.

Tesco powered ahead as the latest figures from Kantar Worldpanel for the 12 weeks to 6 November 2016 showed the group has grown at its fastest rate in three years, with sales increasing by 2.2%.

On the data front, the ZEW survey for November is at 1000 GMT, along with the flash estimate of third-quarter eurozone GDP.