European shares rise as energy stocks lift on high oil prices
Energy shares led gains in Europe after Brent crude futures extended gains above $90 per barrel amid supply concerns.
European stocks edged higher on Friday as energy shares climbed, driven by elevated oil prices that boosted the sector's outlook.
The pan-European STOXX 600 index rose 0.3% by midday, with energy stocks leading advancers after Brent crude futures extended gains above $90 per barrel. The commodity's strength reflected persistent supply concerns, including geopolitical risks in key producing regions.
Oil's upward momentum supported shares of major European energy firms, including Shell and BP, which both traded higher. Shell gained 1.2%, while BP advanced 0.9%, contributing to the sector's outperformance.
The broader market showed limited movement outside of energy, with financials and industrials trading relatively flat. Utilities also lagged as investors weighed mixed signals on European economic growth.
Analysts noted that while energy stocks benefited from higher oil prices, broader market sentiment remained cautious due to ongoing macroeconomic uncertainties. Inflation pressures and central bank policy expectations continued to weigh on investor confidence.
The European Central Bank's recent guidance on interest rates also remained a focal point, with traders monitoring any shifts in monetary policy that could impact equity valuations.
European shares have been volatile in recent sessions, reflecting shifting sentiment amid fluctuating oil prices and mixed economic data.
David reports on energy, metals and agricultural markets, tracking how supply signals and safe-haven demand move prices across the commodities complex.
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