European shares rose on Tuesday as investors rebuffed concerns over surprise output cuts by OPEC and its allies while awaiting eurozone producer prices for more clues on the European Central Bank‘s (ECB) monetary tightening path, according to Reuters.
The pan-European STOXX 600 index edged 0.2% higher after a subdued trading session on Monday as a jump in oil prices stoked fears of stubborn inflation.
Real estate and retail shares led the gains for the broader markets while oil and gas stocks continued its upswing, with the index adding 0.2% after clocking its biggest one-day gain since November on Monday.
Tech shares, however, dipped 0.1% as bond yields rose following fears of inflation emanating from OPEC+ slashing oil output by further 1.16 million barrels per day (bpd).
Oil prices rose for a second consecutive day after the surprise cut by OPEC+, with Brent and U.S. WTI crude rising more than 1% each.
Euro zone producer prices for February will be on investors’ radar during the day, and are expected to show a contraction in prices in February on a monthly basis.
Euro zone consumers cut their inflation expectations in February and also took a more optimistic view on growth and unemployment, an ECB survey showed.
Investors will also closely monitor Credit Suisse’s annual general meeting, where the management of the Swiss bank will face shareholders’ ire for the first time after it was rescued last month by rival UBS.