Europe open: Shares up as German factory orders rise, BP ups buybacks

(Sharecast News) - European shares rallied at the open on Tuesday as German factory orders unexpectedly rose in December, while oil giant BP surged after it announced a $1.75bn share buyback. The pan-European Stoxx 600 index was up 0.50% at 486 in early deals.

German factory orders rose 8.9% on the month on a seasonally and calendar adjusted basis following a flat reading in November and versus expectations for them to be unchanged.

On the year, meanwhile, factory orders were 2.7% higher in December following a 4.7% decline the month before.

In 2023 as a whole, incoming orders fell by 5.9% on a calendar-adjusted basis compared to the previous year, according to official data. However, other vehicle construction recorded growth - this includes, among other things, the construction of aircraft, ships and trains.

In equity news, BP rose to the top of the Stoxx 600, up 5%, after announcing plans increase shareholder returns even after a full-year profits halved on the back of weaker oil prices.

Swiss bank UBS fell despite beating fourth-quarter earnings expectations and unveiling a return of share buybacks worth up to $1bn in the second half of the year.

Reporting by Frank Prenesti for Sharecast.com