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

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. 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.