On Tuesday, the 5th of February, 2019, the European shares had jumped to a fresh nine-week high over strong reports on BP update, gain in the oil stocks on upbeat crude prices and a recovered banking sector index, although there had been a few distressful updates including Apple Supplier AMS.
The pan-European STOXX 600 index surged by 1.3 percent to its highest level since the December 3rd, 2018, while the eurozone stocks secured a gain of 1.5 percent in the intra-day trade.
The commodity-heavy FTSE 100 surged over 2.1 percent out of the blue, as a falling pound sterling on disappointing UK PMI data proffered an exhortative boost to the blue chips and there had been strong revenue reports outside Britain, which helped to offset the foggier market appearance.
Following the release of solid BP data, a multinational oil and gas company headquartered in London, the European stocks started to whooshing forward, as in the statement, the BP had bene quoted saying that their profit was doubled to $12.7 billion in 2018 despite multiple geo-political tension including the Brexit chaos, a budget drama in the Italian Cabinet and the US-China tariff war.
While addressing to the BP’s surprisingly solid updates a Bernstein Analyst, Oswald Clint, said, “This is the eighth quarter in a row that BP have beaten street expectations.
Surely that’s enough to convince ‘Mr. Market’ that something has changed inside BP. t’s all down to unheard-of upstream project execution and faster than we expected downstream new site roll-out”.
The BP’s profit was largely driven by the upbeat crude oil price in 2018, which once attempted to retest the 90s per barrel for Brent crude and 80s for the US crude.
Apart from that, the BP also avoided a slump during the declining of oil price below 50s per barrel, following the acquisition of a large portfolio of US shale assets. Nonetheless, following the reveal of the data, the BP shares rose by as much as 5.1 percent in the intra-day trading, posting their best day since September, 2016, meanwhile the oil index secured a gain of 1.7 percent.
The Eurozone banks had recovered after six straight session of losses, in the wake of a sagging economy and dovish ECB stance, posted a rise of 1.7 percent.