Energy and Renewables Support the Stoxx
- STOXX 600 up 0.3%
- Energy, utilities lead
- Brent prices rise
- Wall St futures edge up
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ENERGY AND RENEWABLES SUPPORT THE STOXX
Energy stocks .SXEP resumed their ascent on Monday, hitting a fresh record high and helping the STOXX 600 .STOXX move into positive territory in early trading, after a softer start on lingering worries over a prolonged conflict in the Middle East.
Beneficiaries of the spike in gas prices and tighter supply in that market, such as Norway's Equinor EQNR.OL led the charge, followed by majors Shell SHEL.L , BP BP.L and TotalEnergies TTEF.PA , as Brent crude rose more than 3% to above $115 a barrel.
Renewables were also in demand on bets that higher fossil fuel prices would spur a renewed push towards clean energy. BofA upgraded offshore wind developer Orsted ORSTED.CO, which recently strengthened its balance sheet, saying the war in the Middle East would create impetus for fossil fuel independence in Europe. Their gains helped the broader utilities sector .SX6P top sectoral gainers.
Materials .SXPP also advanced, led by Rio Tinto and a surge in Norsk Hydro NHY.OL on a spike in aluminium prices following damage to two of the metal's biggest producers in the Middle East. Industrials .SXNP and financials .SX7P lagged.
