European shares lifted by oil bounce, dealmaking; cybersecurity stocks gain

Xavier Trudeau
Mai 16, 2017

US energy firms have added oil rigs for a 17th week in a row, extending a 12-month drilling recovery that is expected to help boost crude production in the United States to a record high next year.

Saudi Energy Minister Khalid al-Falih and his Russian counterpart Alexander Novak are scheduled to meet in Beijing on Monday to discuss oil output policy.

The Organization of the Petroleum Exporting Countries meets in Vienna on May 25 to consider the extension. Oil prices were rallying with Brent crude, the global crude benchmark, up 2.4% to $52.06 per barrel, and West Texas Intermediate, the U.S. benchmark, 2.5% higher to $49.01 a barrel at the time of writing.

The news from the energy sector more than offset concern over the weekend after a successful missile test by North Korea and a cyber attack that affected computers in more than 150 countries.

A cybersecurity exchange-traded fund ISE jumped more than 3 percent, while London-listed shares in cloud network security firm Sophos popped more than 7 percent higher to hit a record level.

On Friday, the S&P 500 and the Dow Jones Industrial Average closed lower after growth in retail sales and consumer prices missed expectations, and worries deepened over the health of department stores after weak earnings reports. DAX rose by nearly half a percent to trade at 12831, while FTSE100 rose 0.3 percent to trade at 7460.

The pan-European STOXX 600 index was flat, hovering near a 2-month high and the euro-region, blue-chip STOXX 50 index was 0.3% at the time of writing.

MSCI's emerging markets benchmark was 0.2 percent higher, having also touched a two-year high earlier on Monday. Tui's share price has lost 4.03 percent to 1,142.00p. The Canadian dollar hit its highest level in over two weeks against the greenback.

That made the past seven days the strongest for the crude market since December and spurred gains for copper and iron ore as well as in commodity-linked currencies including the Australian and Canadian dollars and Russia's rouble.

The dollar was marginally higher at 113.36 yen, following Friday's 0.5 percent loss.

Global benchmark Brent was also up 1 percent to $51.37 a barrel. "With a thin US data calendar, there's not much to propel yields or the dollar back up".

The FTSE's gains came despite a stronger pound, which rose around 0.25 per cent against the U.S. dollar as stock markets opened. USA gold futures gained 0.48 percent to $1,233.60 an ounce.

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