RTTNews - The European markets rose for the first time in three days on Monday, as heavily weighted energy stocks gained on firmer crude oil prices and financial stocks climbed on broker upgrades.
Eurozone economic sentiment rose more than expected in June, a closely watched survey revealed today. The economic sentiment indicator rose to 73.3 from upwardly revised 70.2 recorded in May, results of the latest business and consumer survey conducted by the European Commission showed. Economists had expected the index to rise to 71 from May's initially reported reading of 69.3. The sentiment index rose for the third straight month.
Crude for August delivery rose $2.11 at $71.27 a barrel on the New York Mercantile Exchange, by the time the European markets closed, as Nigerian militants damaged and partly shut down an offshore oil platform belonging to Royal/Dutch Shell.
The FTSEurofirst 300 index of pan-European blue chips closed 1.78% higher at 859.63 points, while the narrower DJ Stoxx 50 index rose 1.74% to 2,124.20 points.
Around Europe, the U.K.'s FTSE 100 index rose 1.25% to 4,294.03, while France's CAC 40 index surged up 2.04% to 3,193.68 and Germany's DAX index climbed 2.27% to 4,885.09.
Oil stocks rallied after crude oil prices advanced. BP, Europe's biggest oil company, climbed 2.5%, while Royal/Dutch Shell, the second biggest, rose 1.8% and Total, the third biggest, surged up 2.5%.
Lloyds Banking Group, Britain's biggest mortgage lender, jumped 6.1% after Goldman Sachs upgraded the stock to buy from neutral.
Munich Re, the world's biggest reinsurer, gained 3.8% after UBS upgraded the stock to buy from neutral.
Novo Nordisk, the world's largest insulin maker, climbed 6.9% after the European Association for the Study of Diabetes said its research into the cancer risk from a Sanofi- Aventis diabetes drug didn't include Novo Nordisk's competing product, Levemir.
Deutsche Telekom rose 2.5% after reports said Vodafone, the world's largest mobile phone company, is considering a bid for T-Mobile UK Ltd., the British wireless unit of Deutsche Telekom, citing a person familiar with the situation. Vodafone shares gained 1.2%.
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