European stock markets moved cautiously higher on Wednesday, as a rally in oil prices boosted energy companies and upbeat Chinese data calmed nerves about growth in the world’s second-largest economy.
The Stoxx Europe 600 index SXXP, +0.48% rose 0.4% to 329.39, rebounding from Tuesday’s closing level, its lowest close since late February.
Oil-related companies posted some of the biggest gains on the pan-European benchmark, tracking a rally for oil prices. West Texas Intermediate crude oil CLK6, +2.59% rallied more than 3%, while Brent LCOM6, +1.82% jumped 2.1% on Wednesday. The moves came after data showed a drop in U.S. oil supplies and after Kuwait expressed confidence that major oil producers will agree on an output freeze at a meeting in Doha on April 17.
In the energy sector, shares of AMEC Foster Wheeler PLC AMFW, +2.93% gained 3%, Tullow Oil PLC TLW, +3.25% rose 2.4%, SBM Offshore NV SBMO, +1.91% climbed 2.3%, and Petrofac Ltd. PFC, +2.05% added 2.1%.
China data: The broader market was encouraged by positive signs as to the health of the Chinese economy. The Caixin China services purchasing managers’ index rose to 52.2 in March, from 51.2 in February, pointing to a recovery that goes beyond the country’s factory sector. Concern that Chinese economic growth is slowing faster than expected was a key driver of the slump in global stock markets earlier in the year.
“[The PMI] has assured the markets that there is hope that the Chinese economy will bounce back,” said Naeem Aslam, chief market analyst at AvaTrade, in a note.
Stocks closed mixed in Asia.
Other movers: Shares of Barry Callebaut AG BARN, +8.87% jumped 8.7% after the chocolate maker reported a rise in fiscal first-half sales.
H&M Hennes & Mauritz AB HMB, +3.88% shares added 4.5% after the fashion retailer said first-quarter sales slumped 30% because of a stronger dollar, but reported a rise in sales.
Air France-KLM AF, -3.17% tumbled 5.2% after the airline said chief executive Alexandre de Juniac will step down in July. De Juniac expects to take the top job at the air-transportation industry group International Air Transport Association, or IATA.
Shares of EasyJet PLC EZJ, -1.51% dropped 2.3% after the budget airline said its passenger load factor dropped in March.
Indexes: The U.K.’s FTSE 100 index UKX, +0.58% rose 0.4% to 6,118.17, largely buoyed by its resources companies.
France’s CAC 40 index PX1, +0.59% added 0.5% to 4,271.96, while Germany’s DAX 30 index DAX, +0.16% was flat at around 9,561.03.
