FTSE 100 flat but other European stocks languish deep in the red

Stocks are deep in the red across Europe, despite some trimming of losses, but stronger oil prices have helped keep the FTSE 100 from further falls.

FTSE 100 boosted by oil again

“Once more, oil prices have come to the rescue of the FTSE 100, with the index looking to end this relatively uneventful session flat on the day. OPEC’s talk of a modest cut to production has provided the spark for another bounce in oil prices. 100,000 barrels per day might not sound like much in the context of global output, but it signals that OPEC is not pleased with the recent weakness in crude prices, and is not particularly bothered by the prospect of a global recession that might do severe damage to demand. Should it continue to cut production if prices sink further, it risks intensifying the global recession that seems to be more likely with each passing day.”

European stocks edge up from their lows

“After the dramatic after-hours reversal on Friday, European stocks have managed to tiptoe off the lows, but with the US out of the picture this might not last. This week’s ECB meeting is unlikely to deliver a sunny outlook, and has the Bank of England has found, a faster pace of rate increases doesn’t do much for your currency when the US economy seems able to weather the storm so much better. Sentiment is in the doldrums, but unless the outlook starts to change, and soon, even a mid-month bounce in stocks looks to have a short lifespan.”