EUROPE MARKETS: European Stocks Log Tiny Gain As Oil Shares Recover

By Carla Mozee and Sara Sjolin, MarketWatch Features Dow Jones Newswires

Euro trading below $1.12

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European stocks ended marginally higher after a volatile session on Thursday, as energy shares trimmed losses on the back of a rebound in oil prices.

The Stoxx Europe 600 ended 0.01% higher at 388.53, after trading as high as 388.71 and as low as 386.10 earlier in the day.

The choppy session came as traders kept a close eye on oil prices, which entered bear-market territory earlier this week on concerns of rising production on the U.S., Nigeria and Libya. On Thursday, crude oil jumped 1.6% to $43.19 a barrel, but remained volatile.

"The turbulence in the energy market is weighing on investor sentiment. Oil has dropped a substantial amount since March and dealers are worried it could diminish inflation and growth prospects," said David Madden, market analyst at CMC Markets, in a note.

"Disinflation is the last thing traders want to see, and while oil remains relatively low it will chip away at investor confidence. A high level of inflation is a problem for an economy, but so is low inflation and that is where we could be heading if the oil market doesn't pick up," he added.

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The Stoxx Europe 600 Oil and Gas Index ended 0.3% lower, after trading down 1.6% earlier.

Among European oil producers, Tullow Oil PLC (TLW.LN) gave up 1.3% and Spain's Repsol SA (REPYY) lost 0.9%.

Norwegian oil services company Subsea 7 SA (SUBC.OS) sank 4.4% following a downgrade to equal weight at Morgan Stanley, and AMEC Foster Wheeler PLC (AMFW.LN) shed 0.8%.

Other movers: Helping pull the Stoxx out of negative territory, shares of Novartis AG (NOVN.EB) (NOVN.EB) jumped 5% after the pharmaceutical company said its Ilaris drug had produced positive trial results.

Imagination Technologies Group PLC (IMG.LN) soared 16%. The company, which designs the iPhone and iPad's graphics chips, has put itself up for sale (http://www.marketwatch.com/story/imagination-shares-surge-16-after-putting-itself-up-for-sale-following-apple-dispute-2017-06-22) following a battle with Apple Inc. (AAPL).

Indexes: In London, the FTSE 100 fell 0.1% to 7,439.29 (http://www.marketwatch.com/story/ftse-100-faces-third-day-of-losses-as-oil-shares-miners-struggle-2017-06-22). France's CAC 40 index rose 0.2% to 5,281.93.

Germany's DAX 30 ended 0.2% higher at 12,794.

The euro fetched $1.1148, down from $1.1170 late Wednesday in New York.

Brexit watch: U.K. Prime Minister Theresa May on Thursday evening is expected to present Britain's plans for European Union citizens living in the U.K. as part of Brexit negotiations.

Read:Brexit 1-year after vote: Here are the 5 possible scenarios for the EU divorce (http://www.marketwatch.com/story/brexit-one-year-after-vote-here-are-the-5-possible-scenarios-for-the-eu-divorce-2017-06-20)

May's Conservative Party is still trying to work out a policy-support deal with the Democratic Unionist Party from Northern Ireland, after losing its parliamentary majority in this month's general election. U.K. Treasury chief Philip Hammond said on BBC Radio he was confident an agreement will be made.

Data: Confidence in France's manufacturing sector declined slightly in June (http://www.marketwatch.com/story/french-manufacturing-confidence-edges-lower-2017-06-22), as business leaders were less bullish about their own production levels, said statistics agency Insee.

(END) Dow Jones Newswires

June 22, 2017 12:12 ET (16:12 GMT)