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Oil stocks and banks help European shares steady above six-month low

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By Reuters
Oil stocks and banks help European shares steady above six-month low
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 27, 2018. REUTERS/Staff   -   Copyright  STAFF(Reuters)

MILAN (Reuters) – European shares steadied in early trading on Tuesday as Chinese equities stabilised after a heavy sell-off and immediate worries over a stand-off between Rome and Brussels over Italy’s spending plans appeared to ease.

Strength in oil stocks on higher crude prices and a rise in banking stocks on rising global yields helped drive the pan-European STOXX 600 index <.STOXX> up 0.05 percent by 0719 GMT, just above the 6-month closing low hit on Monday. Germany’s DAX <GDAXI> and Britain’s FTSE 100 <.FTSE> were flat.

The oil and gas index <.SXEP> rose 1.1 percent, while basic resources stocks <.SXDP> were also in demand, up 1.3 percent as metal and crude prices rose. [MET/L] [O/R]

Banks added 0.5 percent with Italian lenders leading the way, up 1 percent after a report that the Italian government was planning investor roadshows to support the bond market.

German lender Commerzbank <CBKG.DE> rose 2.8 percent after an upgrade to overweight from JPMorgan.

RPC Group <RPC.L> rose 4.6 percent after the plastic packaging maker gave two private equity firms that are considering rival takeover offers more time to make bids.

Defensives were broadly lower, keeping a lid on gains, while Sage Group <SGE.L> led fallers on the STOXX 600, down 5.8 percent, after a downgrade from Barclays.

(Reporting by Danilo Masoni, Editing by Helen Reid)