European shares made a strong start to the week, taking their cues from a positive session in Asia, as investors eyed a European Central Bank policy meeting on Thursday.
The pan-European Stoxx 600 index rose 1% in early deals with all major regional bourses higher.
“Oil prices are trading higher, attempting to reverse course after last week’s sharp declines. Crude suffered its biggest weekly drop in a month amid fears of a global recession and softer demand,” said Victoria Scholar, head of investment at Interactive Investor.
“A weaker US dollar combined with risk-on sentiment which is lifting global equities are also supporting more bullish price action to start the week for oil with WTI and Brent crude straddling the psychological $100 a barrel level.”
Investors are also expecting a 25 basis point rise in rates when the ECB meets.
In equity news, UK motor insurer Direct Line plunged 14% as the company lowered its profit outlook, citing a volatile market.
Haleon shares made their debut on the London Stock Exchange today as a result of its demerger from GlaxoSmithKline, with investors receiving one Haleon share per one share of the parent company. The stock was down around 5%, while GSK plummeted 19%.
The newly-formed company was the result of a merger of the consumer health divisions of GSK, Pfizer and Novartis which boasts a portfolio including Panadol and Sensodyne.
