European energy stocks led gains in the region’s equity market Wednesday, as oil prices surged after OPEC delegates reached a deal to cut production.
The Stoxx Europe 600‘s /zigman2/quotes/210599654/delayed XX:SXXP -2.35% rose 0.3% to end at 341.99, building on Tuesday’s advance of 0.3%. The pan-European benchmark achieved a monthly rise of 0.9%, marking its first advance after two monthly losses.
Oil soars: The Stoxx Europe 600 Oil & Gas Index /zigman2/quotes/210599627/delayed XX:SXEP -2.65% leapt 3.4% Wednesday as Brent crude oil and West Texas Intermediate oil /zigman2/quotes/209723641/delayed CLF27 +0.77% each rallied about 8%. Those jumps came as representatives of the Organization of the Petroleum Exporting Countries agreed to cut production by 1.2 million barrels a day from the current 33.6 million barrels. The much-anticipated decision aimed at addressing a global oil glut came at their meeting on Wednesday in Vienna, Austria.
Read more: MarketWatch’s OPEC live blog
Shares of Spanish oil producer Repsol SA /zigman2/quotes/202941606/delayed ES:REP -1.36% rose 4.3%, Tullow Oil PLC /zigman2/quotes/205079109/delayed UK:TLW -3.07% sprang up 13%, and Portugal’s Galp Energia SGPS /zigman2/quotes/206136034/delayed PT:GALP -1.71% bounced up 4.5%.
Among oilfield equipment and services companies, Italy’s Saipem SpA /zigman2/quotes/203593562/delayed IT:SPM -1.71% climbed 9.6%, Norway’s Subsea 7 SA /zigman2/quotes/202505552/delayed NO:SUBC -2.50% picked up 4.4%, and Petrofac Ltd. /zigman2/quotes/202340229/delayed UK:PFC -1.60% rose 3.2%.
Other movers: Royal Bank of Scotland Group shares closed down 1.4% as the lender failed a tougher stress test of systemic U.K. banks, the Bank of England said Wednesday. RBS must raise around £2 billion ($2.5 billion) in capital.
Linde AG’s stock /zigman2/quotes/203890251/delayed DE:LIN -1.91% was pushed 4.7% higher as U.S. competitor Praxair Inc. moved to resume merger talks with Linde that could lead to the creation of a $60 billion industrial-gas giant, The Wall Street Journal reported.
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National indexes: Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -2.33% rose 0.2% to end at 10,640.30, while France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -2.19% was up 0.6% at 4,578.34.
Economic data: The eurozone’s annual rate of inflation rose to 0.6% in November, the highest since April 2014, Eurostat said Wednesday. But the rate remained well below the European Central Bank’s target of just under 2%. ECB policy makers will meet on Dec. 8, and investors will watch whether they decide to continue its bond- buying program that’s set to expire in March.