Investing.com - European stocks showed mixed trade on Monday as investors watched oil surge 5% and Italy promised to back its oldest bank Monte dei Paschi.
During European morning trade, the Euro Stoxx 50 fell 0.23%, France’s CAC 40 slipped 0.16%, while Germany’s DAX 30 was off 0.51%.
As Monte dei Paschi continued efforts to push ahead with a €5 billion ($5.3 billion) capital increase, reopening a debit-to-equity swap in which retail investors could convert bonds to shares, the Italian Treasury was reported to be prepared to back the oldest bank in the world if the recapitalization fails.
Monte dei Paschi (MI:BMPS) led the FTSE MIB higher with gains of around 8%.
Meanwhile, oil prices jumped 5% as the Organization of the Petroleum Exporting Countries (OPEC) and other producers cemented their first deal since 2001 to reduce output in the hopes of reigning in the global supply glut.
Non-OPEC members agreed to cut production by 558,000 barrels per day, lower than the 600,000 target but still the largest ever agreed reduction from producers outside the cartel.
Energy stocks were broadly higher, as French oil and gas major Total SA (PA:TOTF) rallied 1.68% and Italy’s ENI (MI:ENI) soared 3.30%, while Norwegian rival Statoil (OL:STL) jumped 2.79%.
Financial stocks traded mixed, as French lenders BNP Paribas (PA:BNPP) slipped 0.23% but Societe Generale (PA:SOGN) gained 0.85%, while Germany’s lenders also showed mixed trade with Commerzbank (DE:CBKG) up 0.70% and Deutsche Bank (DE:DBKGn) down 0.92%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) gained 1.02% and 3.36% respectively, while Spanish banks BBVA (MC:BBVA) dropped 0.39% and Banco Santander (MC:SAN) advanced 0.51%.
In London, the commodity-heavy FTSE 100 slipped 0.11%, on mixed performance in the mining sector.
Shares in Glencore (LON:GLEN) lost 0.10% and Anglo American (LON:AAL) advanced 1.07%, while BHP Billiton (LON:BLT) and Rio Tinto (LON:RIO) gained 2.99% and 0.66% respectively.
Energy stocks added to gains, as BP (LON:BP) advanced 2.34% and rival Royal Dutch Shell (LON:RDSa) soared 2.75%.
Financial stocks were also showing mixed trade, with shares in HSBC Holdings (LON:HSBA) down 2.03% and the Royal Bank of Scotland (LON:RBS) gained 0.21%, while Barclays (LON:BARC) and Lloyds Banking (LON:LLOY) lost 0.94% and 0.16%, respectively.
In the U.S., equity markets pointed to a slightly lower open while market participants waited for the monetary policy decision by the Federal Reserve on Wednesday. The Dow Jones Industrial Average futures pointed to a 0.11% decline, S&P 500 futures a 0.19% drop, while the Nasdaq 100 futures indicated a 0.63% loss.