European Stocks Advance; Shell Energises London

Europe's stock markets took to higher ground Tuesday, with London energised by Royal Dutch Shell, dealers said

London, (APP - UrduPoint / Pakistan Point News - 28th Nov, 2017 ) :Europe's stock markets took to higher ground Tuesday, with London energised by Royal Dutch Shell, dealers said. Shell rallied after the energy giant pledged to resume all-cash shareholder dividends on improving profitability thanks to higher oil prices and deep cost-cutting.

Shares in the Anglo-Dutch titan soared almost 3.50 percent as investors welcomed the news, topping the FTSE 100 risers' board. The news also dragged rival BP 0.8-percent higher. "A very good morning for Royal Dutch Shell allowed the FTSE to ignore issues in both its mining and banking sectors," said Spreadex analyst Connor Campbell.

"The oil giant rocketed 3.5 percent higher after it restored an all-cash dividend. "This growth could not come at a better time for the FTSE, which jumped more than half a percent largely on the strength of Shell's gains and the subsequent rise from BP," he added.

London's financial sector was somewhat boosted after the Bank of England declared Britain's top seven banks had passed its latest stress tests. All seven -- comprising Barclays, HSBC, Royal Bank of Scotland, Lloyds, Nationwide, Santander and Standard Chartered -- passed its stress assessments for the first time since it began testing in 2014, and are "resilient" to recession.

But Barclays and RBS fared the worst, struggling in the central bank's severe economic stress scenario. RBS shares nevertheless gained 0.1 percent in value but Barclays stumbled 1.0 percent lower.

- Caution prevails in Asia - Elsewhere, Asian traders shifted cautiously on Tuesday with Chinese stocks swinging back and forth, while concerns grew about the future of the much-vaunted US tax reforms.

After months of gains across global equities, investors are taking a step back on unease that some valuations may be too high, though bitcoin continued its surge to new records and was on course to break the $10,000 mark.

Shanghai ended a volatile day up 0.3 percent, having lost more than three percent since Wednesday with mainland dealers spooked by Beijing's crackdown on risky dealing.

A warning from authorities last week about the sharp rise in one of the country's best-performing stocks added to worries.

Analysts have also noted a lack of intervention by state-backed firms to support key issues, indicating a willingness to see prices fall to cool the market. Greg McKenna, chief market strategist at AxiTrader, also pointed out that several data reports have undershot expectations recently, raising worries about the Chinese economy.

"That means the first two weeks of December, when we get the next monthly update on the Chinese economy, are going to be very important," he added. - Eyes on Washington - Eyes are now on Washington where senators are expected to vote on Donald Trump's tax-cut plans, but there are fears his Republican party might not be able to muster enough votes to push it through.

While the passage of the bill would likely fire up global markets, analysts are concerned its failure could lead to a correction. Expectations Trump would push through his market-friendly measures of cutting taxes, ramping up infrastructure spending and cutting red tape have helped fuel a global rally.

- Key figures around 1145 GMT - London - FTSE 100: UP 0.5 percent at 7,423.13 points Frankfurt - DAX 30: UP 0.3 percent at 13,036.60 Paris - CAC 40: UP 0.5 percent at 5,389.02 EURO STOXX 50: UP 0.5 percent at 3,581.54 Tokyo - Nikkei 225: FLAT at 22,486.24 (close) Hong Kong - Hang Seng: FLAT at 29,680.85 (close) Shanghai - Composite: UP 0.3 percent at 3,333.66 (close) New York - DOW: UP 0.1 percent at 23,580.78 (close) Euro/dollar: DOWN at $1.1893 from $1.1898 at 2200 GMT Pound/dollar: DOWN at $1.3306 from $1.3318 Dollar/yen: UP at 111.26 Yen from 111.09 yen Oil - Brent North Sea: DOWN 59 cents at $63.23 per barrel Oil - West Texas Intermediate: DOWN 54 cents at $57.57 burs-rfj/bcp/rl ROYAL DUTCH SHELL PLC BARCLAYS ROYAL BANK OF SCOTLAND GROUP BP HSBC LLOYDS BANKING GROUP STANDARD CHARTERED