European stocks close higher on easing oil prices, hopes for coordinated supply response
Brent crude retreat and expectations of strategic stockpile release support risk appetite across European markets
ISTANBUL
European stock markets closed with gains on Tuesday as oil prices declined and expectations of coordinated action by major economies to stabilize energy supplies improved investor sentiment.
Global markets rebounded after volatility at the start of the week when oil prices surged. Brent crude, which had climbed to around $120 per barrel, retreated to about $83. Remarks by US President Donald Trump suggesting the conflict with Iran was close to ending also supported risk appetite.
With broad-based gains across sectors, the benchmark Stoxx Europe 600 index rose 1.88% to 606.12 points.
Among major markets, London’s FTSE 100 gained 1.59% to 10,412.24, while Germany’s DAX 40 rose 2.39% to 23.968.63
France’s CAC 40 advanced 1.79% to 8,057.36, and Italy’s FTSE MIB 30 also climbed 2.67% to 45,201.69.
The euro/dollar exchange rate was trading 0.1% higher at 1.1642 as of 1810 GMT.
Investor focus also turned to a virtual meeting of G7 energy ministers, attended by International Energy Agency (IEA) Executive Director Fatih Birol, where discussions included potential measures to safeguard energy supply, including the release of emergency oil reserves.
Airline shares lead gains
Airline stocks were among the main beneficiaries of the decline in oil prices. Shares of Lufthansa Group rose 7.9%, while Air France-KLM and Ryanair gained 3.2%.
Banking stocks also advanced, with Deutsche Bank rising 3.4% and Commerzbank gaining 4.5%. Volkswagen shares climbed 2.8% after reporting annual results that exceeded expectations, while Siemens Energy ended the session 6% higher.
Cautious outlook remains
Economic data remained in the background as geopolitical developments dominated markets. Germany’s Federal Statistical Office (Destatis) reported that exports fell 2.3% month-on-month in January to €130.5 billion ($151.8 billion).
Analysts said that although easing oil prices and expectations of coordinated supply measures supported markets, investors remain cautious amid uncertainty surrounding developments in the Strait of Hormuz and broader geopolitical risks.
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