European stock markets were slightly higher in afternoon trade Monday as dollar strength took a breather and oil prices climbed.
The pan-European Stoxx 600 edged higher on Monday afternoon after fluctuating for much of the morning session. Sectors were mixed though basic resources outperformed their peers, rising over 2 percent, amid a spike in metal prices.
Essentra, the plastic and packaging components supplier, was at the bottom of the European benchmark, dropping more than 18 percent. The company announced it was cutting its full-year adjusted operating profit on the back of restrictions in the Chinese market.
Rio Tinto announced job cuts Monday in its iron ore division due to “tough market” conditions, helping shares to rise by nearly 1 percent.
Meanwhile in the U.S., the Dow Jones industrial average opened higher as investors continued to anticipate what President-elect Donald Trump’s economic policies could mean for the economy.
Sarkozy bows out
In France, former President Nikolas Sarkozy conceded defeat in the primaries for the 2017 presidential election. The second round to select the candidate for the ring-wing Les Republicains will be disputed next weekend by Francois Fillon and Alain Juppe.
In Germany, Chancellor Angela Merkel confirmed expectations that she will run for a fourth term in office. Meanwhile, the German economy should slowdown in the last quarter of this year, after a solid performance in the first six months of 2016, the finance ministry said Monday.
Also on Monday, President Mario Draghi of the European Central Bank is expected to speak in Strasbourg to members of the European Parliament.
Oil trading higher
Oil was trading higher on Monday morning as OPEC members seemed closer to a deal to cut output following comments from Russian President Vladimir Putin. In Europe, oil and gas stocks were up by more than 1.5 percent.
Source: CNBC
