European Stocks Rise as Geopolitical Worries Ebb; Energy Drops
European stocks gained as easing geopolitical concerns in the Middle East lifted sentiment.
The Stoxx Europe 600 Index rose 0.5% as of 3:46 p.m. in London as the construction and media sectors rallied while energy stocks were pulled lower by falling oil prices. Cheaper crude boosted airline shares.
Crude tumbled more than 6% and gold edged lower after Iran said its oil industry was operating normally following Israel’s attacks on military targets across the country in retaliation for a missile barrage earlier this month.
“The limited response from Israel has raised hopes that the conflict will not escalate further,” said Mohit Kumar, chief strategist and economist for Europe at Jefferies.
Equities in Europe are set for a small retreat in October as risks including the UK budget and the US presidential election keep traders cautious. Sectors most exposed to China’s economy, such as luxury stocks and miners, have come under particular pressure as investors assess the country’s push to revive stalling growth.
Source : Bloomberg
