Europe Markets: European energy plays rally as crude-oil futures jump

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A rally in crude-oil futures sent European energy sector higher on Tuesday, helping markets recover some lost ground from the rough start to the second quarter.

After falling 2.9% on Monday, the Stoxx Europe 600 SXXP, +0.36%  edged up 0.4%.

Oil producers including Repsol REP, +4.05%  and Royal Dutch Shell RDSA, +8.50%  , and oil service firms including TechnipFMC FTI, +7.70%  , were helped as light sweet crude oil futures CL.1, +8.42%  jumped. President Donald Trump expressed optimism Russia and Saudi Arabia can work out their differences that led to a price war, ahead of a meeting he’s holding with oil executives.

But big pharmaceuticals, including Roche ROG, -0.97%   and AstraZeneca AZN, -1.72%  , lost ground.

The broader concern is when the coronavirus outbreak will get under control and allow to re-open for business. Global new-case growth was 9%, the fourth consecutive day it’s been under 10%, though U.S. growth was 14.2%, with Florida becoming the latest state to issue a shutdown.

In the worst-affected state, New York case growth was 10.3% as deaths jumped by nearly 30%, according to data compiled by Deutsche Bank.

Traders will be focused on initial jobless claims data due for 8:30 a.m. Eastern, after last week’s numbers spiked to 3.3 million.

Cruise operator Carnival CCL, -6.78%  slumped 7%. Carnival priced the stock offering at $8 a share, vs. a close on Monday of $8.80. Carnival said it is decreasing its common stock offering to approximately $500 million from the previously announced $1.25 billion, while increasing its senior debt offering to $4 billion from the previously announced $3 billion. Carnival also is selling $1.75 billion in convertible notes.

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