A surge in the price of oil has catalysed a rebound in European stock markets with the FTSE 100 up over 1%, reaching back over 5900.

The basic resources and energy sectors led the gains with Royal Dutch Shell amongst the top risers after an 87% slump in annual profits met expectations. See the full CMC write up here: http://tinyurl.com/jzhvktf

Oil markets looked through another rise in weekly US inventories and rallied alongside other commodities as the dollar fell sharply following dovish commentary from Fed member Bill Dudley.

After a rough day for global financial stocks yesterday, the woes are continuing for Credit Suisse in which shares slumped 12% after the Swiss bank reported a loss in the fourth quarter. Provisions for litigation and the write off of goodwill made for unpleasant reading but it was the losses in the investment banking and capital markets division that hit results the hardest.

The British pound extended its gains to a near-one month high versus the dollar on “Super Thursday” in which the Bank of England votes on interest rates, releases minutes and quarterly forecasts. Growth and inflation expectations are likely to be lowered again, making no rate hike this year a dissect possibility. If BoE governor Mark Carney reiterates his recent stance of being in no rush to raise rates then there is some room to the downside for Sterling after its 200pip rally yesterday.

US stocks look set for a stronger open ahead of the release of factory orders data and results from LinkedIn, Philip Morris and ConocoPhillips


US pre-opening levels

S&P 500: 11 points higher at 1,923

Dow Jones: 86 points higher at 16,422

Nasdaq 100: 26 points higher at 4,197


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