October 9, 2018 / 7:36 AM / 7 months ago

Oil stocks and banks help European shares steady above 6-month low

MILAN, Oct 9 (Reuters) - European shares steadied in early trading on Tuesday as Chinese equities stabilised after a heavy sell-off and immediate worries over a stand-off between Rome and Brussels over Italy’s spending plans appeared to ease.

Strength in oil stocks on higher crude prices and a rise in banking stocks on rising global yields helped drive the pan-European STOXX 600 index up 0.05 percent by 0719 GMT, just above the 6-month closing low hit on Monday. Germany’s DAX and Britain’s FTSE 100 were flat.

The oil and gas index rose 1.1 percent, while basic resources stocks were also in demand, up 1.3 percent as metal and crude prices rose.

Banks added 0.5 percent with Italian lenders leading the way, up 1 percent after a report that the Italian government was planning investor roadshows to support the bond market.

German lender Commerzbank rose 2.8 percent after an upgrade to overweight from JPMorgan.

RPC Group rose 4.6 percent after the plastic packaging maker gave two private equity firms that are considering rival takeover offers more time to make bids.

Defensives were broadly lower, keeping a lid on gains, while Sage Group led fallers on the STOXX 600, down 5.8 percent, after a downgrade from Barclays.

Reporting by Danilo Masoni, Editing by Helen Reid

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