Investing.com - European stocks opened sharply higher on Tuesday, as a rally in oil prices lent strong support the energy sector.
During European morning trade, the EURO STOXX 50 rallied 1.26%, France’s CAC 40 climbed 1.15%, while Germany’s DAX 30 jumped 1.23%.
Oil prices continued to rise sharply after Goldman Sachs (NYSE:GS) said on Monday that the market shifted into deficit in May due to falling production.
Energy-related stocks were broadly higher, as French oil and gas major Total SA (PA:TOTF) jumped 1.04% and Italy’s ENI (MI:ENI) SpA rallied 1.46%.
Financial stocks added to gains, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) advanced 1.54% and 1.64%, while Germany’s Deutsche Bank (DE:DBKGn) and Commerzbank (DE:CBKG) climbed 0.34% and 1.60%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) rallied 1.27% and 3.07% respectively, while Spanish banks Banco Santander (MC:SAN) and BBVA (MC:BBVA) gained 1.33% and 1.10%.
Elsewhere, Volkswagen (DE:VOWG_p) saw shares advance 1.01% despite news on Monday that Norway’s sovereign-wealth fund plans to join a class-action lawsuit filed against the German auto maker over its emissions scandal.
In London, FTSE 100 climbed 0.82%, led by Taylor Wimpey (LON:TW), whose shares surged 3.95% after the housebuilder raised its dividend payout policy and increased its three-year targets.
Mining stocks were also broadly higher on the commodity-heavy index. Shares in Rio Tinto (LON:RIO) and Glencore (LON:GLEN) rallied 2.49% and 3.35% respectively, while Bhp Billiton (LON:BLT) surged 3.69% and Anglo American (LON:AAL) soared 4.54%.
In the financial sector, stocks were also on the upside. Lloyds Banking (LON:LLOY) gained 0.95% and HSBC Holdings (LON:HSBA) jumped 1.45%, while Barclays (LON:BARC) rallied 1.47% and the Royal Bank of Scotland (LON:RBS) advanced 2.07%.
BAE Systems (LON:BAES) was one of the few stocks in the red, slipping 0.12% despite news that it and Japan’s Fujitsu have implemented a new cyber threat intelligence sharing solution.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.29% gain, S&P 500 futures a 0.29% rise, while the Nasdaq 100 futures indicated a 0.38% increase.