Europe stocks gain, oil jumps on Middle East tensions

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Energy stocks book largest gains in Europe after crude oil prices jump at least $1 per barrel over fears of disruptions in the Middle East after Iran’s seizure of British tanker

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 17, 2019.

Europe's regional STOXX 600 index gained 0.1 percent, Germany's DAX and France's CAC rose 0.3 percent and Britain's FTSE jumped 0.5 percent. "Sentiment about company earnings potential appears to be mixed at best, with some evidence that we might be seeing a bit of a pickup in economic data, after a slow first half of the year," said Michael Hewson at CMC Markets.

Global stocks rose towards the end of last week after dovish comments by New York Fed President John Williams boosted expectations the world's top central bank would lower rates by 50 basis points at its July 30 to 31 meeting. The dollar inched higher and US Treasury yields held steady on the greater likelihood of a shallower rate cut. The dollar index gained to 97.169 against a basket of six major currencies after rising 0.4 percent on Friday.

Elsewhere in currencies, the pound edged lower before the Conservative Party chooses its new leader on Tuesday. The pound was last down 0.2 percent at $1.2486, having declined 1.6 percent against the dollar so far this month. It was also lower against the euro at 89.890 pence.

 

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