Saturday, 9 April 2016

Equities rise as oil stocks, Italian banks advance

European equities rebounded on Friday as Italian banks rallied and energy stocks advanced, although a pan-European index was headed for its fourth straight week of losses.

The STOXX Oil and Gas sub-index rose 3.5 per cent to lead gains among sectors, as encouraging economic data from the United States and Germany helped oil prices to rally. Hopes that global oversupply could be ending helped as well.

Shares in BP, Total and Eni rose 3.3 to 4.3 per cent.

Italian banks surged, with UniCredit gaining 9.7 per cent, the biggest advance in the FTSEurofirst 300 index on hopes that the government will soon offer a plan to set up a fund to buy bad loans and plug capital shortfalls at banks.

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