ROME: Europe’s benchmark stock index ended at its highest close in 11 weeks on Tuesday, as oil companies jumped on the back of a sharp rebound in oil prices.
The Stoxx Europe 600 SXXP, +0.43% rose 0.4% at close at 378.36, after swinging between gains and losses for most of the session.
On Monday the benchmark index closed up 0.3%, the first rise in three sessions, after a gauge of eurozone manufacturing activity unexpectedly improved.
Oil rally: On Tuesday, solid advances for energy companies helped prop up the markets, as crude oil prices CLZ5, -0.13% jumped 2.7%.
Shares of Tullow Oil PLC TLW, +17.57% surged 18% after the company’s partner in Ghana, Kosmos Energy KOS, +3.17% said a new project is on track to start producing oil in 2016.
Also in London, shares of BP PLC BP., +3.86% BP, +2.62% rose 3.9% and Royal Dutch Shell PLC RDSB, +2.92% RDS.B, +1.90% climbed 2.9%, while France’s Total SA FP, +3.63% TOT, +2.19% added 3.6%.
Shell said earlier on Tuesday it expected benefits from its planned $70 billion takeover of BG PLC BG., +2.67% to be 40% higher than previously announced.
The gains for the heavyweight oil companies helped propel the U.K.’s FTSE 100 UKX, +0.34% 0.3% higher to 6,383.61 and France’s CAC 40 index PX1, +0.41% up 0.4% to 4,936.18.
Germany’s DAX 30 DAX, +0.00% ended flat at 10,951.15, as shares of Volkswagen AG VOW3, -1.51% VOW3, -2.00% VLKAY, -5.59% weighed.
Shares of the car maker fell 1.5% after the U.S. Environmental Protection Agency leveled new emissions-rigging charges against the auto maker. The EPA on Monday said its recent tests found Volkswagen installed devices aimed at manipulating U.S. pollution tests in some Volkswagen, Audi and Porsche diesel-powered vehicles.
Volkswagen has disputed the claims, saying it didn’t install emissions-test evading software on any of the newly identified vehicles.
