European Stocks Extend Gains, Energy Prices Jump

Bridgette Randall
21 Sep, 2022
Frankfurt

European bourses traded near flat-line in cautious morning trading ahead of the Fed's rate-hike decision after the market-close.

Market indexes scaled higher after the U.S. markets advanced with the presumed 75 basis points rate increase later in the day.  

The Bank of England, the Swiss National Bank, the Norges Bank of Norway and the Bank of Japan are also expected to announce their rate decisions on Thursday. 

The DAX index added 0.6% to 12,741.19, the CAC-40 index gained 0.7% to 6,022.49 and the FTSE 100 index increased 0.5% to 7,230.87. 

Energy prices traded higher after Russia mobilized 300,000 reserve troops to bolster its military presence in Ukraine raising the prospects of a prolonged war. 

Crude oil was nearly unchanged at $84 a barrel and natural gas price held near $7.90 a thermal unit.  

However, in Europe, TTF natural gas price advanced 4% to 202.50 euros a megawatt hour. 

Brent crude oil traded up 60 cents to $91.25 a barrel. 

Resource stocks were in focus after crude oil and commodities prices advanced. 

Antofagasta, BHP Limited, Anglo American and Glencore gained between 1% and 3%. 

Homebuilders in the U.K. gained on the hopes that the recently appointed Prime Minister Liz Truss may lower stamp duty in the government's mini-budget this week. 

Taylor Wimpey, Persimmons and Barratt Developments increased between 2% and 4%. 

 Uniper SE plunged 31.2% to 2.38 euros after Germany nationalized the natural gas importer and the electric utility. 

A German government agency acquired the company stake held by Fortum Oyj for 1.70 euros a share. 

Vallourec SA increased 6.1% to 10.37 euros after the maker of premium casing and tubing products signed a 10-year sales agreement with Saudi Arabia based Aramco. 

Schneider Electric SE increased 1.5% to 117.80 euros after the company agreed to acquire stakes held by minority shareholders in Aveva Plc for 3,100 pence a share. 

The offer price is 41% premium to the last closing price of 2,192 pence before the commencement of the offer period. 

Aveva Group Plc rose 1.8% to 3,108 pence.