(MENAFN- AFP) European stocks were mostly weaker Thursday after a soft Wall Street opening, but shares in London rose after the Bank of England's latest economic forecast.
At around 1445 GMT, London's benchmark FTSE 100 index stood out from the crowd at 0.57 percent higher, while Frankfurt shares were down 1.02 percent followed by Paris at 0.66 percent lower.
European markets rebounded in earlier trading after tumbling on Wednesday, highlighting the recent volatility.
Shares in the US were down at opening, slipping slightly, while Asian stock markets mostly rallied in earlier trade Thursday.
As widely expected, the Bank of England left interest rates at a record low -- 0.5 percent -- as policymakers fretted over slumping oil prices and the darkening global outlook.
However the central bank cut its economic growth forecast to 2.2 percent this year from its previous 2.5-percent prediction.
Analysts had already foreseen it holding fire on rates.
But Ipek Ozkardeskaya, market analyst at traders London Capital Group, had said before the announcement that the bank would likely have to take into account risks such as Britain's possible European Union exit and falling oil prices.
Earlier this week Federal Reserve Vice Chair 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 earlier firmer 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 rising 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 1500 GMT -
London - FTSE 100: UP 0.57 percent at 5,870.47 points
Frankfurt - DAX 30: DOWN 1.02 percent at 9,338.53
Paris - CAC 40: DOWN 0.66 percent at 4,199.11
EURO STOXX 50: DOWN 0.38 percent at 2,885.52
Tokyo - Nikkei 225: DOWN 0.9 percent at 17,044.99 (close)
New York - Dow: DOWN 0.2 percent at 16.304,23
Euro/dollar: UP at $1.1191 from $1.1111 on Wednesday
Dollar/yen: DOWN at 117.00 yen from 117.81 yen
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.