Lufthansa leads European stock bounce as oil slump boosts profit

lunes 12 de enero de 2015 07:18 GYT

* FTSEurofirst 300 up 1 pct, recoups last week's fall

* Lufthansa says profit to rise on lower oil prices

* Continental eyes sales growth pick-up

By Francesco Canepa and Sudip Kar-Gupta

LONDON, Jan 12 (Reuters) - European equities rebounded on Monday, led by airlines and auto stocks after positive updates by Continental and Lufthansa.

German airline Lufthansa rose 2.5 percent in brisk volume after saying it expects the lower price of oil to cut its fuel bill for 2015 by 13 percent after the cost of hedging, setting it on course for a rise in profit this year.

Brent crude dropped below $49 a barrel on Monday, around its lowest since April 2009, hit by a global supply glut. Lufthansa assumes a price of $68 for Brent in 2015.

"The tremendous oil price collapse is not adequately reflected in the airlines' share prices in my view," said Jochen Rothenbacher, research and sales director at Equinet Bank in Frankfurt.

"Historically, oil price collapses coincided with a weakening economy. This time it's different and the market has to learn that."   Continuación...