European stocks move higher; oil prices rise as glut fears subside

European stock markets inched slightly higher during early morning deals Tuesday as investors searched for the next catalyst following the French election, while oil prices rose on renewed optimism over a potential extension to OPEC supply cuts.

The pan-European Stoxx 600 moved up 0.25 percent with almost all sectors and major bourses in positive territory.

Oil and gas stocks were among the best performers on renewed hopes that OPEC-led supply cuts could be extended. However, a relentless rise in U.S. crude output activity appeared to cap oil price gains. Italian oil firm ENI was around 1 percent higher in early morning deals.

Commerzbank reported a 28 percent increase in net earnings for the first three months of the year on Tuesday. Germany’s second-largest lender beat analyst expectations and said it would aim to keep its base costs stable throughout the year. Its shares were almost 1 percent higher.

Adecco’s first-quarter profit rose more than a fifth, as the world’s largest temporary staffing company continued to get a boost from major markets in southern Europe. Its shares rose over 0.6 percent as the Zurich-based firm beat analyst expectations.

Micro Focus plummeted to hit the bottom of the European benchmark on Tuesday after the British information technology firm said it is disappointed with the declining revenue at the Hewlett Packard Enterprise business it is buying. Its shares slipped more than 12 percent shortly after the open.

Elsewhere, South Korea held presidential elections on Tuesday following the dismissal of former premier Park Guen-hye in March when the country’s constitutional court upheld her impeachment regarding alleged involvement in a corruption scandal.

Source: CNBC