European Markets Jump 2% on Brief Rebound in Brent Crude

Lucy Stoeva
23 Dec, 2015
New York City

European markets jumped 2% after Brent crude rebounded from the lowest since 2004 a day earlier. OPEC report suggested that the demand for its crude in 2020 is likely to be less than in 2016. Game Digital tumbled. Interbulk agreed to be acquired.

[R]4:00 PM Frankfurt – European markets jumped 2% after Brent crude rebounded from the lowest since 2004 a day earlier. OPEC report suggested that the demand for its crude in 2020 is likely to be less than in 2016. Game Digital tumbled. Interbulk agreed to be acquired.[/R]

European stocks advanced on Wednesday following a rebound in commodity stocks and ahead of quieter holiday trading.

Bargain hunters snapped up oil and mining companies trading at near three-year lows as copper, oil, iron ore and coal decline more than 40% in the year and extend losses for the third year in a row.

European markets are scheduled to close early on Thursday and will be shut on Friday and in addition the U.K. markets will remain closed on Monday for Boxing Day.

Glencore surged 6.3%, Anglo American soared 8.4% and the steel producer ArcelorMittal advanced 2.8%

In energy stocks, Tullow Oil shot up 7.5% and Repsol added 6.2%.

Brent Crude rebounded 67 cents to $36.79 a barrel after touching as low as $35.97 in the previous session, lowest since 2004 and dipping for the first time in many years below the price for the West Texas Intermediate crude.

In London trading, FTSE 100 index soared 133.85 or 2.2% to 6,216.90 and in Frankfurt the DAX index advanced 200.13 or 1.9% to 10,689.15.

In Paris, CAC 40 index jumped 92.59 or 2% to 4,661.57.

BTS Group AB gained 0.7% to 71.50 Swedish kronor after the consultancy services provider agreed to acquire The Synergy Group Pty Ltd, an Australian sales consulting services provider for an undisclosed amount.

""BTS''s strategy for acquisitions aims to create a broader base for future organic growth while actively consolidating a highly fragmented market,” said Henrik Ekelund, President and CEO of BTS Group AB.

Game Digital Plc tumbled 38.7% to 126.08 pence after the U.K.-based video games retailer said revenue in the twenty-one week period ending on December 19 dropped 6.7% from a year ago to £466.8 million, mainly due to the decline in sales of older games.

Total sales of video games in the U.K. market plunged 13.5% and gross trading margin dropped 4.8% to £73.9 million from the same period a year ago.

While sales of the newer Xbox One and PlayStation 4 software soared 19.9% to £114.6 million, growth was offset by an unexpectedly high decline in Xbox 360 and PlayStation 3 content sales, which slumped 56.7% to £23.4 million.

Video console sales in the period tumbled 28.3% to £98.7 million.

Interbulk Group Plc surged 124.8% to 8.99 pence after the U.K.-based logistic company said profit in the year ending in September more than doubled to £2.57 million, compared to £1.20 million in the previous year.

Revenues in the year ending in September fell 12% from a year ago to £225.3 million.

Separately, the company agreed to be acquired by Dutch logistics company Den Hartogh Holding for an undisclosed amount.

The transaction is expected to close in the first-quarter of 2016.

Panmure Gordon & Co. Plc plunged 21.7% to 65 pence after the company said it expected loss for this year due to difficult market conditions.

The U.K.-based investment banking and brokerage group forecasted a pre-tax loss of £4 million to £4.5 million, compared to profit of £2.5 million a year ago.

The company had to delay several corporate deals to 2016.

“I don’t think anyone has had a great second-half. It’s been one thing after another: a massive spike in volatility around August and September, concerns about China, and a commodities sell-off.

In the past month, fund managers just shut up shop in terms of appetite for new deals,” said Phillip Wale, CEO of the company.