European equities rally, boosted by gains for oil stocks

European equities rose on Wednesday, helped by a rally for energy stocks as oil prices gained.

Crude was advancing in the wake of U.S. President Donald Trumps much-anticipated decision to withdraw from an Iran nuclear deal and reimpose sanctions on the oil-producing nation a move that could reduce global crude supplies.

What are markets doing?

The Stoxx Europe 600 index
SXXP, +0.23%
gained 0.2% to 390.73, putting the pan-European index on track for its fourth up session in a row.

The U.K.s FTSE 100
UKX, +0.53%
tacked on 0.4% to 7,595.87, while Germanys DAX 30
DAX, +0.28%
added 0.1% to 12,924.44. Frances CAC 40
PX1, +0.04%
was roughly unchanged at 5,521.75.

The euro
EURUSD, -0.1012%
bought $1.1843, down slightly from $1.1864 late Tuesday in New York. Retreats by the currency tend to bolster the overseas revenue generated by Europes multinational companies.

Check out: 8 reasons to ditch the euro right now

What is driving the markets?

Trump announced on Tuesday that the U.S. was abandoning a 2015 Iran nuclear deal. He hinted at an openness on the part of the U.S. to negotiations, and analysts said that was helping equity markets avoid a sizable selloff. Even so, the withdrawal puts Washington at odds with European allies.

Encouraging first-quarter earnings reports also were providing a lift on Wednesday.

What are strategists saying?

The reason why the broader sentiment was not affected could be Trumps willingness to enter talks if Iran agrees to do so, and/or the prospect of Iran staying in the deal, even without the U.S., said Charalambos Pissouros, senior market analyst at JFD Brokers, in a note.

Stocks in focus

Among energy stocks, Tullow Oil PLC shares
TLW, +5.15%
shot up 5.1%, while Royal Dutch Shell PLC
RDSA, +2.49%
gained 2.4% and BP PLC
BP., +2.29%
added 1.7%.

Those stocks climbed as oil benchmarks
CLM8, +2.87%
LCON8, +2.81%
moved up by nearly 3%.

On the earnings front, Siemens AG shares
SIE, +4.65%
jumped 4.5% after the industrial conglomerate posted a rise in quarterly profit. Meanwhile, Anheuser-Busch InBev SAs stock
ABI, +2.39%
BUD, +0.61%
climbed 2.5% after the beer giants results.

Related Topics European Markets Europe Investing Stocks European Central Bank

Quote References SXXP +0.91 +0.23% UKX +40.04 +0.53% DAX +36.69 +0.28% PX1 +2.09 +0.04% EURUSD -0.0012 -0.1012% TLW +11.60 +5.15% RDSA +63.50 +2.49% BP. +12.60 +2.29% CLM8 +1.98 +2.87% LCON8 +2.10 +2.81% SIE +5.12 +4.65% ABI +1.98 +2.39% BUD +0.60 +0.61% Show all references
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Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

Victor Reklaitis

Victor Reklaitis is a London-based markets writer for MarketWatch. Follow him on Twitter @VicRek.

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