Europe open: Shares up ahead of flash eurozone GDP

(Sharecast News) - European share markets opened higher on Tuesday as investors eyed flash eurozone fourth-quarter gross domestic product figures later in the morning. The pan-regional Stoxx 600 rose 0.18% to 485.69 in early deals, with all major bourses higher.

In economic news, France avoided technical recession at the end of 2023, but its economy stagnated in the second half. The CAC-40 index still managed an 0.11% gain.

Ahead of the main eurozone data, Austria also avoided a technical recession as its economy grew by 0.2% in the final quarter of 2023, much better than the forecast 0.2% contraction.

Spain's economy grew at a faster pace in the final three months of 2023, expanding by 0.6% in the October-December quarter, up from growth of 0.4% in July-September.

Oil prices stayed above $82 a barrel after state-run Saudi Aramco dropped a plan to increase daily production capacity at the request of the energy ministry.

In a major policy u-turn, the world's largest oil company producer ditched plan's to boost maximum sustainable production capacity from to 13 million barrels a day from 12 million by 2027.

"Is the Kingdom growing more cautious on the outlook for oil demand, or is it simply trying to boost its coffers in the short term by squeezing the market? At the moment, it isn't clear which factor is driving the decision, but it is clear that the markets supply/demand balance will be tighter going forward as a result," said Steve Clayton, head of equity funds at Hargreaves Lansdown.

In equity news, WPP gained as it aimed to achieve revenue growth of at least 3%, a 16% to 17% operating profit margin, and at least 85% adjusted operating cash flow conversion. WPP said it was planning to invest around £250m annually in proprietary technology to support its artificial intelligence and data strategy.