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European shares edge higher on boost from banks, energy

European shares edge higher on boost from banks, energy
European shares edge higher on boost from banks, energy   -   Copyright  Thomson Reuters 2022
By Reuters

– European shares rose on Tuesday, buoyed by energy stocks extending a rally on the back of higher oil prices and gains for banks following hawkish comments from the U.S. Federal Reserve chair.

The pan-European STOXX 600 edged up 0.2% after a lacklustre start to the week. The European oil & gas sector index gained 0.8%, while banks rose 1.1%.

Federal Reserve Chair Jerome Powell said on Monday the central bank must move “expeditiously” to raise rates and possibly “more aggressively” to battle red-hot inflation, just as markets digested a 25 basis point rate hike last week.

Russia’s invasion of Ukraine has triggered a rally in commodities including oil and industrial metals on concerns about supply disruptions, with crude prices jumping as some European Union members discussed a potential oil embargo on Moscow. [O/R]

London’s oil-exporter heavy FTSE 100 index led gains among its continental peers for the second straight day, rising 0.4%.

Finnish utility Fortum rose 0.7% as it agreed to sell its 50% stake in Fortum Oslo Varme for 10 billion Norwegian crowns ($1.14 billion).

Europe’s largest online restaurant food ordering service Just Eat Takeaway.com gained 1.8% on a partnership with McDonald’s Corp to expand delivery.