European Shares Open Stronger on Oil Gains

European stocks opened higher on Monday, August 31, as heavyweight oil and gas companies were supported by higher crude prices, while positive service sector data from China boosted optimism about an economic recovery.

The Stoxx600 index of European shares rose 0.4% in early trading, consolidating the small gains made last week, amid some optimism towards a treatment for Covid-19. Volume is likely to remain weak today due to a holiday in the UK market.

The European oil and gas sector rose more than 1 percent and led gains among sectors, thanks to hopes for more global stimulus measures and a recovery in demand in China, which contributed to the rise in crude prices.

Official data showed service sector activities in China grew at a faster rate in August as demand continued to recover from the decline caused by the Corona virus.

On the equity level, Suez topped the list of rising shares on the Stoxx600 index after its larger counterpart after larger peer Veolia offered to buy a 29.9% stake in the French water and waste firm from gas and power utility Engie for 2.9 billion euros.