Energy stocks shore up European shares as markets scramble amid crisis

European shares gained on Thursday, caused by a bounce in energy stocks as investors pin hope on a deal between Saudi Arabia and Russia regarding their oil price war.

The pan-European STOXX 600 gained 0.3%. The energy sector .SXEP hiked 4.4%, with Royal Dutch Shell, BP, and Total SA contributing to the gain. However, the increase was cut by a 1% fall in travel & leisure stocks, financial services, and utilities.

Investors have closely monitored corporate damage amid the crisis and the release of stimulus measures to ease the impact on the economy. The STOXX has declined over 25% from its record high despite last week’s bounce.

U.S. jobless claims are estimated to have increased up to 3.5 million at the end of March 28, as President Donald Trump warned of more economic trouble to come.

World stocks steadied on Thursday as weak factory activity threatened to cut into global growth forecasts. Analysts estimate a $6 trillion loss in economic output for the first half of 2020.

Germany and Italy have extended their lockdowns as a way to contain the virus. Experts anticipate another earnings recession in 2020, with firms holding back estimates before the reporting season.