4:00 PM Frankfurt, Germany - European markets closed higher after oil rebounded ahead of OPEC meeting this weekend and mining companies extended their gains. Anglo Americanís unit De Beers reported growth in diamond sales for the third month in a row. The Italian government confirmed plans for a bailout fund.
European markets closed higher on Tuesday as energy stocks benefited from the surge in oil prices, while mining companies extended Monday gains.
Oil futures traded at 2016 highs today, fueled by expectations that OPEC members may agree to limit production on the upcoming summit this weekend in Doha, Qatar.
Brent crude oil futures rose 3.5% to $44.31 per barrel and WTI crude oil futures surged 3.1% to $41.62 per barrel.
Among oil stocks, Tullow Oil gained 3.2%, Seadrill advanced 2.7%, Total SA climbed 1.84%, while BP and Royal Dutch Shell added 1.5% each.
Mining stocks also charged higher, driven by rising copper prices and positive economic developments in China.
Anglo American jumped 9.2% after its unit De Beers reported growth in diamond sales for a third month in a row
Glencore soared 5%, BHP Billiton surged 3.9%, and Antofagasta gained 1.6%.
In Rome, the government confirmed plans to create a bailout fund, privately funded, which would buy bad loans from Italyís banking sector and help strengthen its capital position.
However, Italian banking shares retreated after the sharp gains in the previous two session.
Banca Popolare di Milano lost 3.7%, Mediobanca Banca di Credito Finanziario tumbled 2.1%, and Banco Popolare Societa Cooperativa was down 0.8%.
The two largest banks, Unicredit and Intesa Sanpaoplo, fell 5.2% and fell 4.1%, respectively. The banks are expected to contribute significant amounts to the fund, according to media reports.
In London, the FTSE 100 index added 42.27, or 0.68%, to 6,242.39, while in Frankfurt, the DAX index gained 78.48, or 0.81 %, to 9,761.47.
In Paris, the CAC 40 index rose 33.28, or 0.28%, to 4,345.91.
LVMH MoŽt Hennessy Louis Vuitton SE
gained 1.5% to Ä148.30 after the French luxury goods maker said first-quarter revenue increased 4% from a year ago.
Sales of apparel and accessories were negatively affected by the decline in tourism after the November terrorist attacks in Paris. However, the strength in the U.S. and the rest of Europe compensated for the sales decline in France.
Oxford Instruments Plc
added 1.3% to 683.5 pence after the provider of technology tools and systems confirmed its previous forecast and reiterated its sales outlook in the last quarter.
Separately, the company said its Chief Operating Officer Ian Barkshire would succeed Jonathan Flint as Chief Executive as of May 11.