Investing.com - European shares rose on Monday boosted by a jump in oil prices, with climbing commodity prices propelling London’s FTSE 100 and Germany’s DAX to record highs.
Oil prices rallied after Saudi Arabia and Russia said Monday they believe a deal to cut oil production should be extended for a further nine months until March 2018 in a bid to slash a global supply glut.
Brent crude surged 2.52% to $52.12 per barrel, while U.S. crude gained 2.57% to $49.07.
In London, the FTSE 100 hit a new all-time record high at the start of trading as shares in energy producers and natural resource stocks rallied.
Shares in Tullow Oil (LON:TLW) were up 2.77% following the rise in oil prices, while shares Royal Dutch Shell (LON:RDSa) rose 1.06%.
Shares in mining giants Glencore (LON:GLEN), BHP Billiton (LON:BLT), and Antofagasta (LON:ANTO) were also sharply higher.
Commodity-related stocks received an additional boost after Chinese President Xi Jinping over the weekend launched a summit to promote the “Belt and Road” a $900 billion infrastructure mega-project.
Shares in cloud network security company Sophos (LON:SOPH) jumped as much as 7% to a record high, as cybersecurity stocks were boosted in the wake of a weekend cyberattack that hit businesses, hospitals and government agencies in at least 150 countries around the world.
In Germany, the DAX gained almost 0.5% at the open, extending its recent rally.
European equities have been boosted in recent weeks amid relief that Emmanuel Macron won the French presidency.
Meanwhile, shares in Italian motorway company Atlantia (MI:ATL) jumped 3% after it launched a €16 billion bid to buy its Spanish rival Abertis (MC:ABE), in a deal that would create one of the world’s largest toll road and infrastructure companies.