European markets shrug off surprise OPEC+ production cut

It’s been a mixed start to the week for European markets with the DAX underperforming on the back of the unexpected announcement by OPEC+ that it will cut production output by 1.1m barrels a day from next month, while the FTSE100 has pushed up to within touching distance of the 7,700 level.

The main beneficiaries of this announcement have been the likes of BP, Shell as well as Harbour Energy as crude oil prices jumped to their highest levels since early March.

The move by OPEC+ is particularly unhelpful for central banks who, while being worried about sticky inflation, are becoming increasingly concerned about pushing rates up from their current levels. These concerns are especially pertinent given recent worries about financial stability, as yields edge back toward their recent peaks.

While the rise in energy prices has helped the energy sector, the rise in yields is also helping to boost the banks, with the likes of Barclays, Standard Chartered, and Lloyds leading the gains here. shrug shirt