oil: oil helps European stocks rise while tobacco under smoke


LONDON (Reuters) – European stocks rebounded on Monday on strong oil reserves as tobacco companies were hit by new signs of regulators tightening the bolts of menthol cigarettes.

The pan-European STOXX 600 gained 0.2 percent by 0826 GMT, ending last week in the red with the feeling still unstable.

Oil inventories rose 1.8 percent after a jump of more than 1.5 percent in oil prices following the announcement of Saudi Arabia's main export cut in December with other producers also considering reductions in 2019 .

Core stock stocks also rose 1.8% on an overall increase in cyclicals.

The stocks of tobacco stole the attention.

Shares of British American Tobacco fell 11 percent to its lowest level since February 2014 after a Wall Street Journal report said the US Food and Drug Administration plans to adopt a ban on menthol cigarettes.

Imperial Brands shares fell only 3.4%, as traders said BAT has the highest exposure to menthol cigarettes.

Results continued to move stocks, although the profit stream had slowed as the season drew to a close.

Simcorp's financial software vendor was STOXX's biggest drop, a 10% drop following its results, after closing on Friday showed a decline in profits.

Shares of Flughafen Zuerich fell 8 percent after the company said that aviation revenues could be affected if the Federal Civil Aviation Office's proposals to cut transfer payments were enacted.

M & A was also a driver.

Shares of SAP fell 3%, the worst fall of DAX, after the software company announced the acquisition of Qualtrics International for $ 8 billion, a price considered expensive by traders and analysts.


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