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European markets close at 3-month high; oil and gas stocks gain 4.7%

This is CNBC's live blog covering European markets.

European markets climbed on Tuesday as investors in the region assessed the economic outlook and concerns over China's tightening of Covid restrictions, which are continuing to pressure output.

European markets


The pan-European Stoxx 600 closed 0.8% higher provisionally, at its highest level for three months. Oil and gas stocks jumped 4.7% after Saudi Arabia denied a report that OPEC+ may boost oil output. Mining stocks rose 2.7%.

The telecoms, household goods and financial services sectors all slipped around 0.1%.

Investors continue to watch economic data closely and assess how it could affect the trajectory of monetary policy from central banks.

The OECD said Tuesday that Europe will bear the brunt of a global economic slowdown as energy prices spike and business activity wanes due to Russia's war in Ukraine.

Global investors have taken some heart from recent, lower-than-expected consumer and wholesale inflation prints in the United States, prompting bets that the Federal Reserve would have to slow its aggressive interest rate hikes.

European stocks climb 0.8% to 3-month high

Europe's Stoxx 600 rose 0.8% to its highest level since Aug. 22 on Tuesday, following a flat session on Monday.

The biggest gains were seen in the energy and mining sectors, with oil and gas firms such as Harbour Energy and BP among the top performers.

At the other end of the index, British wealth tech firm Allfunds Group dropped 10.3% after a share sale.

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— Jenni Reid

European stocks hit 3-month high

Gains by energy and mining firms led European stocks to a three-month high despite the latest gloomy warnings on the European economic outlook.

The pan-European Stoxx 600 index hit 436.46 points, its highest level since Aug. 22.

Oil and gas stocks were trading 4.6% higher as the basic resources sector added nearly 3%.

Global markets have also been boosted as investors foresee an end in sight for interest rate rises, following a lower than expected inflation reading from the U.S.

— Jenni Reid

Energy stocks boosted by OPEC+ report

Energy firms were the top risers among European firms in afternoon trading, after Saudi Arabia denied a report that OPEC+ may boost oil output.

Scottish oil and gas firm Harbour Energy, Monday's worst-performing stock, pared its losses to climb 7%, as energy industry pipe manufacturer Tenaris, Spanish energy firm Repsol and the U.K.'s BP all rose 6.5%.

Energy giants Shell and Totalenergies both added around 5%.

— Jenni Reid

Stocks rise at market open Tuesday

Stocks jumped at the open of the trading day on Tuesday as Wall Street shook off worries of covid lockdowns in China and looked to some solid earnings reports.

The Dow Jones Industrial Average climbed 190 points, or 0.56%. The S&P 500 and the Nasdaq Composite advanced 0.54% and 0.37%.

Shares of Best Buy popped nearly 9% after the company hiked its 2023 fiscal outlook and beat earnings expectations.

—Carmen Reinicke

Stocks on the move: Harbour Energy up 7%, Allfunds down 10%

British oil and gas company Harbour Energy saw its shares jump more than 7% by mid-afternoon to lead a broad rally for oil stocks, after Saudi Arabia denied reports of a potential supply hike from OPEC+.

At the bottom of the European blue chip index, British wealth tech firm Allfunds Group was down more than 10% after a share sale.

- Elliot Smith

OECD: Europe faces hardest hit from global slowdown

The OECD said Tuesday that Europe will bear the brunt of a global economic slowdown as energy prices spike and business activity wanes due to Russia's war in Ukraine.

The 38-member intergovernmental organization said global economic growth will slow from 3.1% this year to 2.2% next year, before accelerating to 2.7% in 2024.

However, growth in the euro zone is set to slow from 3.3% in 2022 to just 0.5% in 2023, before recovering to 1.4% in 2024, as the continent is disproportionately affected by the global energy crisis.

- Elliot Smith

Investors should look at these real assets to navigate higher inflation, strategist says

Investors should look at these real assets to navigate higher inflation, strategist says
VIDEO3:3703:37
Investors should look at these real assets amid higher inflation: Strategist

Paul Flood, head of mixed asset at Newton Investment Management, discusses the real assets that investors should consider buying to diversify portfolios for a future of higher and more volatile inflation.

Stocks on the move: BP up 5%, Allfunds down 9%

U.K. wealth tech company Allfunds Group saw its shares fall 9% to the bottom of the Stoxx 600 in early trade.

At the top of the index, BP shares added 5% to lead a broad advance for the oil and gas sector.

- Elliot Smith

CNBC Pro: Morgan Stanley's Wilson says inflation is set to slide, but warns of a 'new era' ahead

Watch CNBC's full interview with Morgan Stanley's Mike Wilson
VIDEO22:5022:50
Watch CNBC's full interview with Morgan Stanley's Mike Wilson

Morgan Stanley's Chief U.S. Equity Strategist Mike Wilson said he expects a "pretty steep decline in inflation," and predicts when this could happen.

But he said there are two areas that are exceptions, where inflation could be "stickier."

CNBC Pro subscribers can read more here.

— Weizhen Tan

CNBC Pro: Amazon's down 40% this year — is it time to buy? Market pros give their take

Once a Wall Street darling, Amazon has lost some of its luster this year. The e-commerce giant's stock has fallen more than 40%, well underperforming the S&P 500, which has declined about 15% in the same period.

Is it time for investors to pile back in? Two market pros faced off on CNBC's "Street Signs Asia" on Thursday to make a case for and against buying the stock.

CNBC Pro subscribers can read more here.

— Zavier Ong

European markets: Here are the opening calls

European markets are set to open higher Wednesday.

The U.K.'s FTSE 100 index is expected to open 6 points higher at 7,689, Germany's DAX up 28 points at 17,587, France's CAC 7 points higher at 7,957 and Italy's FTSE MIB up 21 points at 32,753, according to data from IG. 

Earnings are set to come from Moncler, Reckitt Benckiser, Aston Martin Lagonda, Co-operative Bank and Holcim. Data releases include Russian unemployment figures and retail sales for January.

— Holly Ellyatt