Bullish oil outlook lifts stock markets

Stock markets got a boost from rising oil prices on Thursday, keeping shares in modestly positive territory, but gains were capped by an intensifying Brexit debate.

With little guidance from key economic data to go by, investors were content to take a breather a day after disappointing corporate results hammered Wall Street.

Oil prices held near six-month peaks after the International Energy Agency forecast that the stubborn oil glut will "shrink dramatically" later this year.

Wall Street opened slightly firmer, unruffled by rising jobless data as the employment market in the world's biggest economy is still believed to be strong.

Monsanto shares leaped following a report that Germany's giant Bayer is mulling a takeover bid worth at least $40 billion for the agriculture giant.

In Frankfurt, where the Dax index was slightly firmer, Bayer shares dropped nearly five percent on the back of the report.

Elsewhere in the eurozone, Paris's CAC index was also moderately higher.

London's benchmark FTSE 100 index firmed a touch but underperformed its peers as the debate on the consequences of a possible British exit from the European Union returned to the fore, sparked by a Bank of England warning that uncertainty over the outcome of next month's EU referendum was already weighing on British growth.

The Bank, unsurprisingly, left leading interest rates unchanged.

"There is no urgency for the Bank of England to do anything, or even hint at any action soon," analysts at Credit Mutuel CIC said.

Asian equities mostly fell, tracking the previous day's sell-off on Wall Street.

Tokyo however bounced into positive territory thanks to a softer yen, which lifts shares of Japanese exporters because their goods become more competitive.

Tokyo's Nikkei ended 0.4-percent higher as the yen eased on speculation the Bank of Japan will boost its stimulus programme.

Speculation began circulating that the BoJ could further ease monetary policy as soon as next month, dealers said.

However, Toyota's shares tumbled after the carmaker warned that its annual net profit is set to fall by about a third owing to recent yen gains and an emerging market slowdown.

Shanghai's main stocks index meanwhile ended marginally lower ahead of the release of fresh economic indicators out of China this week.

A disappointing trade report at the weekend revived concerns about the world's second largest economy, while there are fears Beijing will hold off introducing any fresh stimulus after a government warning over debt levels.

- Key figures around 1400 GMT -

New York - Dow: UP 0.3 percent at 17,767.41

London - FTSE 100: UP 0.04 percent at 6,165.07

Frankfurt - DAX 30: UP 0.2 percent at 9,990.30

Paris - CAC 40: UP 0.6 percent at 4,340.97

EURO STOXX 50: UP 0.4 percent at 2,969.24

Tokyo: Nikkei 225: UP 0.4 percent at 16,646.34 (close)

Shanghai - composite: DOWN 1.18 points at 2,835.86 (close)

Hong Kong - Hang Seng: DOWN 0.7 percent at 19,915.46 (close)

Euro/dollar: DOWN at $1.1409 from $1.1426 Wednesday

Dollar/yen: UP at 108.95 yen from 108.39 yen