© Reuters. FILE PHOTO: A display of German stock prices DAX graph is pictured on the stock market in Frankfurt, Germany, November 18, 2022. REUTERS/Staff
By Sruthi Shankar
(Reuters) – European shares rose on Tuesday, supported by a rebound in oil prices after a slide last session as investors weighed mixed signals from central bank policymakers on the path to raising interest rates.
The pan-European index rose 0.4% to move near its strongest levels in two months.
Oil and gas rose 3.6%, to recoup losses on Monday, as prices rose after Saudi Arabia’s energy minister rejected a report that suggested OPEC+ was considering a supply cut. [O/R]
The miner gained 2.0% after falling 1.6% in the previous quarter due to concerns over the number of COVID-19 cases in China.
However, outside of commodity markets, gains were limited as investors looked for clues on the Federal Reserve’s rate hikes at its November meeting to be released on Wednesday.
“Investors should be on the lookout for the Fed to say it can continue to raise rates to reduce inflation, even though October’s rates were lower,” said Russ Mold, chief economist at AJ Bell.
“Investors may have been caught off guard by the recent inflation shock that triggered the global business meeting. Tomorrow may feel like a bucket of cold water has been dumped on this meeting.”
Meanwhile, ECB policymaker Robert Holzmann backed a third straight hike of 0.75 percent in the reserve price at the next rate-setting meeting in December, according to a report in the Financial Times.
This follows comments this week from other ECB officials who said the central bank could reduce interest rates.
Italy’s blue-chip index rose 0.4% after the new right-wing government signed off on its first budget, a 35 billion euro ($35.84 billion) package aimed at reducing debt for the energy sector and cutting taxes from next year for workers. payer and payer. self employed.
It will now go to parliament, which is expected to pass it by the end of the year.
“In our view, the budget is based on a sustainable and balanced approach to public finance,” Equita analyst Luigi De Bellis wrote in a statement.
Between individual properties, Me (BIT:) rose 1.1% after Italy’s biggest company said it plans to sell 21 billion euros ($21.51 billion) worth of assets to reduce debt.
Prosus (OTC:) slid 2.1% after the Dutch tech investor said he expects earnings for the six months to Sept.