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Europe close: Indices push higher on the back of gains for oil and gas shares

By Alexander Bueso

Date: Tuesday 22 Nov 2022

Europe close: Indices push higher on the back of gains for oil and gas shares

(Sharecast News) - European shares rallied further on Tuesday on the back of energy stocks as Saudi Arabia dismissed a report that it was planning a rise in oil output.
The pan-European Stoxx 600 index rose 0.73% to 436.22.

Regional markets were all higher and crude oil futures recovered from a slump on Monday after Saudi Arabia denied reports it was discussing an output hike with OPEC and its allies.

Energy, oil & gas stocks were back in demand on the news. Uniper, BP, Repsol, TotalEnergie, Galp Energia, Shell and Aker were all higher.

In economic news, the OECD said Europe would be hardest hit by a global economic slowdown as energy prices spike and business activity wanes due to Russia's unprovoked invasion of Ukraine.

The organisation said global economic growth would slow to 2.2% next year, from 3.1% in 2022 before accelerating to 2.7% in 2024. However, growth in the eurozone was set to slow to just 0.5% from 3.3% before recovering to 1.4% in 2024, as the continent is disproportionately affected by the global energy crisis.

On the stocks front, TAG Immobilien slumped 9% as the German property company suspended its dividend as it tried to strengthen its balance sheet.

Enel edged higher as the Italian utility company said its planned asset sales worth €21bn to cut net debt and focus its presence in six core countries.

Prosus slid after the Dutch tech investor said it expects interim earnings to have dropped by at least 79.9% from the same period last year.

Thyssenkrupp fell after activist investor Cevian cut its stake in the steelmaker.

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