European stocks up with sentiment boosted by stronger oil prices

European stocks edged higher in morning trade Tuesday as firming oil prices boosted global sentiment.

The pan-European STOXX 600 was around 1 percent higher with all major bourses in positive territory.

Investor caution continues to mount as election day approaches in the U.S. This as comments from Federal Reserve Vice Chair Stanley Fischer on Monday suggested the U.S. central bank was “very close” to meeting its employment and inflation goals, sending U.S.stocks lower into Monday’s session close.

In Asia, disappointing earnings and weak outlooks from Hong Kong-listed companies, particularly in the telcoms and property space, dampened enthusiasm for equities, as concerns over a softer yuan continued to grow.

All eyes are now on inflation data expected out of the U.S. and U.K. as a multi-week sell-off of government bonds in these markets continued apace on Monday.

Burberry shares lose shine

Burberry shares fell sharply despite the luxury goods maker reporting a rise in second-quarter retail sales as the company warned of a challenging external environment.

Continental was also near the bottom of the STOXX 600 after the company issued a profit warning and a number of brokers cut their target price for the stock.

Ryanair cut its full-year profit forecast by 5 percent due to the plunge in the value of sterling, sending shares in the budget airline lower.

Shares of Danone were flat after it reported third-quarter sales that came in slightly below analyst expectations.

British housebuilder Bellway reported a 40 percent rise in pretax profit for its fiscal 2016 year, helping push shares higher.

Miners rally

The basic resource sector outperformed the broader market on Tuesday, helped by a softer dollar as well as a rise in oil prices.

Precious metals miners Randgold Resources and Fresnillo were in positive territory thanks to an uptick in the price of gold.

Source: CNBC