European stocks take positive start, Stoxx Europe 600 increases 1%

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ROME: European Stocks clawed back some of current damages on Thursday, boosted up by the last day’s rebound in the price of value.
The Stoxx Europe 600 index was 1 per cent higher in early trading, bouncing back from Wednesday’s sharp fall which came after a World Bank cut in global growth forecasts and an intensifying commodity slump fanned fears of a weakening global economy.
London’s FTSE 100 index rose 1.09 per cent on Thursday to 6,458.05 points compared with Wednesday’s close.
Frankfurt’s DAX 30 climbed 1.19 per cent to 9,933.45 points and the CAC 40 in Paris gained 1.56 per cent in value to 4,262.94.
Earlier in Asia, Japanese stocks rose 1.9 per cent from a one-month low. US stocks were poised to open higher, with futures indicating a 0.7 per cent opening gain for the S&P 500. Changes in futures aren’t necessarily reflected in market moves after the opening bell.
Traders and analysts said a sharp rally in oil prices on Wednesday was behind the return of confidence to markets. Brent crude, which had dropped below $US46 a barrel on Wednesday, climbed almost to $US50. But there were signs the bounce could be short-lived as oil resumed its slide on Thursday, with Brent down 2 per cent at $US48.86.
Still, European markets took their cue from the overnight gains, with oil and gas shares on the Stoxx Europe 600 surging 2 per cent, making it the best-performing sector. Mining shares also climbed, with copper prices staging a modest recovery following their largest one-day decline in more than three years.
Recent sharp swings have left market participant nervous, analysts say.
“Equity investors may be questioning what recent moves imply for current assumptions about corporate earnings growth, and how equities should be valued in this volatile environment,” said Ian Williams, economist and strategist at brokerage Peel Hunt.
In currency markets, the dollar was slightly higher against most major peers. The buck has tended to climb recently at times when investors reach for riskier assets.
Safe harbor government bonds weakened slightly. Germany’s 10-year yield edged up to 0.44 per cent, still close to Wednesday’s all-time low of 0.42 per cent.