European shares have been down for a couple of weeks now, but it kept afloat on Tuesday thanks to the climb of energy and mining stocks. Oil companies’ shares proved to be doing quite well by the close of Tuesday, and were some of the best performers.
For instance, BP recorded a 2.9% rise, while Total went up 2.2%. It seems the meeting of oil ministers from Venezuela, Qatar, Russia and Saudi Arabia finally bore some fruits as they heightened the speculations that have been there about output cuts. Earlier in January, these countries agreed that they would freeze their oil output levels. This, according to the energy minister of Qatar, provided other producers a chance to follow suit.
The closed-door meeting that originally started in Doha came after declining oil prices were recorded over a period of 18 months. The prices are said to have fallen because of oversupply of oil as well as a slowing economy globally.
Mining stocks in Europe also advanced, contributing hugely to the rise of European Shares. It was lifted particularly by a rally in the prices of copper.
Vodafone shares slipped slightly following a decision by the British phone networks to combine their operations in Netherlands and work with Liberty Global. Vodafone paid 1 billion Euros to Liberty.
However, shares in Orange, a French telecom group, rose slightly after the company recorded impressive profits sooner that it had expected. Orange confirmed that it is still in talks to purchase Bouygues Telecom.
The output cuts on oil are working quite well, and oil prices may rise with time, stabilizing the European stock market. With the climb of mining and energy stocks being recorded on Tuesday, financial analysts expect that the trend will continue, which will see the European shares rise over the coming days.