European stocks propped up by rise in Britain’s FTSE

A rise in Britain’s stock market, where commodity-related companies climbed on the back of a further rebound in oil prices, propped up European equities Thursday.

Britain’s blue-chip FTSE 100 index was up 0.2 percent at its close. In continental Europe, Spain’s IBEX closed 0.4 percent higher, while France’s CAC was down 0.2 percent at its close.

Germany’s DAX market was closed for the session, while other markets had a half-day of trading ahead of the Christmas holiday, and volumes were below average.

Oil majors such as BP and Royal Dutch Shell climbed 1.5 percent and 0.4 percent respectively, as U.S. crude prices rose for a fourth straight session.

“The London market is benefiting from the latest rebound in crude oil prices,” said Spreadex analyst Connor Campbell.

“The oil price, so troublesome in the run in to Christmas, is now hovering just below the $38 per barrel mark, boosted by a crude oil inventories figure on Wednesday.”

Concerns about an economic slowdown in China, which is a major consumer of commodities such as oil and metals, hit the FTSE and other European markets in the second half of this year.

Those markets have rebounded in late December, however, helped partly by signs of economic stimulus measures in China.

Record low interest rates set by the European Central Bank and other steps to spur an economic recovery in the euro zone have also supported European stock markets.

The FTSE 100 is down nearly 5 percent since the start of 2015, but France’s CAC and the DAX are up around 9 percent.

source: Reuters