ROME: European stocks ended stronger on Tuesday trade, thanks to a rally in the energy and basic resources sectors and a degree of relief over Greece’s latest plans to renegotiate its debt.
The pan-European Euro Stoxx 600 Index ended the day higher with heavily-weighted stock BP helping the wider benchmarks. Shares were up 2.5 percent after the company reported a narrow loss for its fourth quarter and announced a cut to its capital expenditure plans. The price of oil also rose Tuesday, further helping the beleaguered sector.
“We believe that BP has put on fantastic performance and dividend announcement by the company was a brave move, especially if you look at the price of oil, which is down nearly 56 percent from its peak,” Naeem Aslam, the chief market analyst at Avatrade, said in a morning note.
Meanwhile, mining stocks with exposure to Australia surged higher. Shares of BHP Billiton rose 4.7 percent and Rio Tinto climbed 3.5 percent. The Reserve Bank of Australia cut rates on Tuesday for the first time since August 2013 as it attempts to support an economy hit by falling commodity prices.
