US, European stocks rise as oil strengthens

European and US stocks climbed Wednesday on higher oil prices as the euro dipped against the dollar on the eve of a European Central Bank meeting.

Data from the US Energy Information Agency Wednesday showed lower oil production and higher stockpiles in the world's biggest economy.

That spurred a nearly four percent rise in oil prices, lifting the Dow Jones Industrial Average by 0.2 percent to its highest close of 2016.

Oil prices "have been the highest correlated factor to the stock market and that's why we're getting higher," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

The CAC in Paris rose 0.6 percent and the German DAX 30 0.7 percent as the euro retreated against the dollar ahead of Thursday's ECB meeting.

The gathering follows an ECB meeting in early March at which the central bank unveiled new stimulus measures in an effort to boost growth and inflation. Most analysts do not expect major new announcements.

But ECB chief Mario Draghi's comments will be scrutinized for "any hints on cutting the deposit rate further into negative territory in the future, something the ECB head had suggested would not happen," said Forex.com analyst Fawad Razaqzada.

"If there is a U-turn in this regard, then the euro could come under renewed pressure."

Shanghai's market was the biggest loser on Wednesday, falling 2.3 percent.

Analysts said there was speculation that a string of positive recent data from China, the world's number two economy, could prevent authorities there from unveiling more stimulus measures.

Volkswagen surged 6.6 percent, lifted by reports that it reached a deal with US authorities to compensate to US car owners that could avert a trial over its emissions-cheating scandal.

Japanese carmaker Mitsubishi Motors crashed more than 15 percent after it admitted it falsified fuel-efficiency tests in more than 600,000 vehicles. Testing was manipulated to boost fuel economy rates above the cars' actual level.

Dow member Coca-Cola tumbled 4.8 percent as it reported a 4.8 percent decline in first-quarter earnings to $1.5 billion. Revenues fell in all of Coca-Cola's reporting regions outside North America.

Chipmaker Intel advanced 1.3 percent after saying it would trim 12,000 jobs, about 11 percent of its staff, as it refashions itself away from the declining personal computers market and toward wearables and other mobile technology

- Key figures around 2100 GMT -

New York - Dow: UP 0.2 percent at 18,096.27 (close)

New York - S&P 500: UP 0.1 percent at 2,102.40 (close)

New York - Nasdaq: UP 0.2 percent at 4,948.13 (close)

London - FTSE 100: UP 0.1 percent at 6,410.26 points (close)

Frankfurt - DAX 30: UP 0.7 percent at 10,421.29 (close)

Paris - CAC 40: UP 0.6 percent at 4,591.92 (close)

EURO STOXX 50: UP 1.0 percent at 3,142.52 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 16,906.54 (close)

Shanghai - Composite: DOWN 2.3 points at 2,972.58 (close)

Hong Kong - Hang Seng: DOWN 0.9 percent at 21,236.31 (close)

Euro/dollar: DOWN at $1.1296 from $1.1359 on Tuesday

Dollar/yen: UP at 109.83 yen from 109.20 yen