The Daily Times Newspaper

Oil and Gas Companies Ahead of the Stock Market Due to Higher Energy Prices

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The European stock markets started the week with gains. The continuously rising energy prices in Europe drove higher prices for oil and gas companies such as Shell, BP, Total and Eni. However, Tech investor Prosus was once again troubled in Amsterdam by Beijing’s increasing urge to regulate the Chinese tech sector.

 

Furthermore, the hope of a strong economic recovery from the corona crisis in the eurozone continued to play a role on the stock exchange floors. As a result, companies sensitive to this, such as banks and insurance companies and retail real estate companies, rose. At the same time, there were concerns about economic growth in China due to new outbreaks of the coronavirus, which affected luxury brands.

The AEX index on Beursplein 5 closed 0.4 percent higher at 791.45 points. The MidKap increased 0.7 percent to 1098.84 points. Stock market indicators in Frankfurt, London and Paris, climbed to 0.6 percent.

Shell was the biggest riser in the AEX with a plus of 2.5 percent. US oil became 1 percent more expensive at $ 70.38 per barrel, and Brent oil cost 0.7 percent more at $ 73.40 per barrel. The gas price also went above 60 euros per megawatt hour for the first time, and energy prices in Germany and the United Kingdom reached new records. Other oil and gas companies such as BP, Total and Eni rose to 3.1 percent.

Prosus (minus 2.9 percent) closed the row after a price loss of 2.5 percent for the Chinese internet company Tencent, in which the tech investor has a large stake. China should take an even tougher approach to big tech companies, an adviser to the Chinese central bank has argued.

Luxury brands such as Kering, LVMH, Hermes, Richemont, Tod’s and Burberry lost up to 6.5 percent. The Chinese economy threatens to grow less rapidly due to the many outbreaks of the coronavirus and the strict measures that China is taking to prevent the spread. Nevertheless, the Chinese market is an important source of income for luxury companies.

AB Foods fell 2.4 percent in London after disappointing sales of clothing chain Primark. The British retail group nevertheless raised its full-year profit forecast. In Frankfurt, Zooplus rose 9 percent. Investor Hellman & Friedman increased its offer for the German pet webshop from 3 billion euros to almost 3.3 billion euros.

The euro was worth $1.1817 against $1.1830 on Friday.

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