European equity benchmarks were mainly higher in early trade on Wednesday as German producer price inflation advanced, oil prices gained traction and telecommunication stocks logged gains.
In economic news, Germany’s index of producer prices for industrial products rose by 2.6% in August compared with the corresponding month of the preceding year, according to Destatis, Germany’s federal statistics office. In July 2017, the annual rate of change had been 2.3% and, compared with the preceding month, the overall index was up by 0.2% in August 2017.
Oil prices were also on the rise despite data from the American Petroleum Institute (API), published on Tuesday, indicating that US inventories of oil rose last week. West Texas Intermediate crude oil futures for delivery in November were 1.1% higher at $50.45 per barrel while Brent crude futures, the international gauge, were up by 0.8% at $55.60 per barrel.
US stockpiles of oil rose by 1.4 million barrels in the week ended September 15, according to the API’s data, which precedes the release of official government data from the Energy Information Administration, due to be published later in the day.
In equities, beverages maker Diageo was leading the decliners on London’s FTSE 100 Index, down by 2.4%, followed by Burberry Group, a clothing and accessories retailer, and miner Rio Tinto, down by 1.4%.
On Frankfurt’s DAX, industrial steel-maker thyssenkrupp was 4% higher, energy company E.ON was up by 1.8%, Linde, a manufacturer of industrial gases, was 0.9% higher and Deutsche Telekom was up by 0.8%. And, on Paris’ CAC-40, Sodexo, a French food services and facilities management company , was 1.0% higher, TechnipFMC, an oilfield services company, was up by 0.7%, telecommunications company Orange, up by 0.7% and Publicis, a communications company, 0.6% higher.
The pan-European Stoxx 600 Index was 0.12% higher, London’s FTSE 100 Index was down by 0.99%, Frankfurt’s DAX was 0.22% higher and Paris’ CAC-40 was up by 0.22% at the time of writing.
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