European stock markets edged higher in morning trade on Thursday as investor sentiment was buoyed by a surge in the oil price after major oil producers agreed to cut production levels.
The pan-European Euro Stoxx 600 Index was higher with all sectors and major bourses in positive territory. The near-6 percent rise in oil prices on Wednesday came after OPEC members reached an agreement to limit production to a range of 32.5 million to 33.0 million barrels per day, down slightly on August’s output of 33.2 million barrels a day.
The meeting had been expected to end in stalemate over how to address a global oil supply glut but Reuters reported that OPEC would finalize an output reduction plan at its official meeting on November 30. Oil and gas stocks surged on Thursday morning, with the sector up 4 percent in early deals.
“Facing the prospect of another sharp fall in oil prices, OPEC has finally put forward the face-saving measure that they hope will keep a floor on oil prices until the next demand season arrives,” a team at Barclays said in a note on Thursday morning.
Deutsche Bank contunes rise
In stocks news, the fate of Deutsche Bank is in focus for markets amid speculation that the German bank could need a state rescue. Shares of the bank were up 2.6 percent on Thursday morning.
Shares of British outsourcing firm Capita fell 20 percent after it cut its outlook and reported client delays following the Brexit vote.
Them park firm Merlin saw its shares lose 4.5 percent after it reported that its London attractions were not boosted by the weaker puond.
Source: CNBC
