Yahoo Finance European stocks recover
European stock markets rebounded Thursday as investors in London awaited the Bank of England's latest economic outlook and an interest rate decision.
Approaching midday, London's benchmark FTSE 100 index was up 1.3 percent, outperforming main eurozone indices, as mining and energy companies enjoyed sharp gains to their share prices on recovering commodity prices.
European markets had tumbled on Wednesday, highlighting the recent volatility.
Asian stock markets mostly rallied in earlier trade Thursday.
In Europe, "the Bank of England is expected to stand pat" on rates, said Ipek Ozkardeskaya, market analyst at traders London Capital Group.
She added that its latest economic outlook would likely highlight risks of Britain's possible exit from the European Union, in addition to "the negative impact of falling oil and commodity prices on recovery, concerns about the global economic outlook led by the slowing Chinese growth (and) disinflationary fears".
Earlier this week, Federal Reserve Vice Chairman Stanley Fischer said the global turmoil had the potential to trip up the US economy and the central bank was closely watching events as it considered monetary policy.
The comments added to speculation the Fed is becoming hesitant to lift rates, following its first hike for more than nine years in December.
Increasing expectations the Fed will stay put on rates for the rest of the year sent the dollar tumbling Wednesday, in turn sending oil prices rallying and providing a fillip to stocks.
A weaker greenback makes oil cheaper for buyers using stronger currencies, which tends to stimulate demand.
With commodity prices firmer, miners led the way in Thursday trading. Shares in Anglo American soared 12.4 percent and Glencore won 7.0 percent in London.
Oil giants were higher also, with Royal Dutch Shell up nearly 7.0 percent. This despite the group announcing a slump in full-year profits after crude prices plunged in 2015.
The Anglo-Dutch group reported profit after tax of $1.94 billion (1.75 billion euros) for last year, down 87 percent compared with 2014.
The slump had been expected after Shell announced two weeks ago that it foresaw annual profit of between $1.6 billion and $2.0 billion.
World oil prices have shed about three-quarters of their value in around 18 months, mainly owing to a global supply glut but also because of weak demand growth and a strong dollar.
The crash in oil prices has been felt sector wide, with Norwegian oil giant Statoil on Thursday saying it was slashing investments and stepping up a cost-cutting programme after recording a huge annual loss of its own for 2015.
- Key figures around 1130 GMT -
London - FTSE 100: UP 1.3 percent at 5,911.5 points
Frankfurt - DAX 30: UP 0.5 percent at 9,484.2
Paris - CAC 40: UP 0.4 percent at 4,241.8
EURO STOXX 50: UP 0.8 percent at 2,919.5
Tokyo - Nikkei 225: DOWN 0.9 percent at 17,044.99 (close)
New York - Dow: UP 1.1 percent at 16,336.66 (close)
Euro/dollar: UP at $1.1170 from $1.1111 on Wednesday
Dollar/yen: DOWN at 117.73 yen from 117.81 yen
