European stocks rebound as crude oil, travel stocks jump

On Tuesday European stocks steadied after declining in the last session, as investors looked to the upcoming earnings season and focused on the prospect of larger United States stimulus under incoming president Joe Biden.

The pan regional STOXX 600 index rose 0.4% by 0811 GMT, with the oil & gas and travel & leisure sectors climbing more than 1% each to lead the gains. Investors booked profits on Monday following last week’s rally after a Democrat sweep in the U.S. Senate elections raised expectations of larger U.S. fiscal stimulus.

Oil majors BP, Royal Dutch Shell and Total gained as crude oil prices rebounded on expectations of a drawdown in U.S. crude oil stockpile. Danish shipping company Maersk rose 2.8% after brokerage Berenberg upgraded the stock to “buy”, saying earnings momentum driven by freight prices could see the stock run higher.