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FTSE 100, European stocks mostly higher as oil rebounds

oil rebounds

The FTSE 100 was 1.03% higher at 7,452, the CAC advanced 0.35% to finish at 6,657 points and the DAX gained 0.29% to 14,422

The FTSE 100 and European stocks were mostly higher this Tuesday, with the UK’s benchmark hitting a two-month high, as oil stocks bounced back.

On Wall Street, stocks rose as traders looked past more China COVID lockdowns and instead focused on a host of strong earnings reports.

The Dow Jones climbed 0.80% to 33,968. The S&P 500 gained 0.72% to 3,949 points and the tech-heavy Nasdaq rose 0.49% to 11,079.

At the close, the FTSE 100 was 1.03% higher at 7,452, while the CAC in Paris advanced 0.35% to finish at 6,657 points. In Germany, the DAX gained 0.29% to 14,422.

The commodities-heavy FTSE 100 traded at its strongest level since September 13.

FTSE-listed AO World surged 16%, as the online electrical retailer forecast top-end full-year earnings despite reporting increased half year losses of £12m compared to £4m.

Founder and chief executive John Roberts said the firm’s turnaround plan to strip out costs was paying off.

Meanwhile, Brent crude bounced back to $89 a barrel after Saudi Arabia denied a report in the Wall Street Journal that oil producers were discussing a production increase for their next meeting, saying a cut approved last month would stay in place until the end of 2023.

Saudi Arabia’s denial of the output increase contributed to a 12% round-trip in front-month Brent prices over the past 24 hours, Stephen Innes, managing partner at SPI Asset Management, said.

He said: It is possible that the suggestions to expand Opec+ production were floated to gauge the price reaction. The initial negative follow-through implies that demand concerns warrant a relatively modest increase in output if Opec+ is looking to stabilise prices once the EU embargo kicks in.

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