Shares of power producers rose as investors warmed to the sector, with one brokerage citing a successful pivot of European utilities to renewable energy.
"The sector no longer looks disrupted," said analysts at brokerage Credit Suisse, boosting their rating on European utilities. "Renewables-focused names are now 50% of sector market capitalization (vs fossil fuels at 20%).
Electric vehicles could boost electricity demand by 10%, and hydrogen could supplement gas." The price of carbon has risen sharply in European carbon-credit markets, "and the sector is now correlated positively with CO2 prices."
More than a million homes and businesses were without power from North Carolina to New Jersey as Tropical Storm Isaias churned up the East Coast Tuesday, leaving downed trees and flooding in its wake. Isaias made landfall late Monday as a Category 1 hurricane near Ocean Isle Beach, N.C. The storm spawned numerous tornadoes, the National Hurricane Center said.
Write to Rob Curran at rob.curran@dowjones.com
