(MENAFN- Gulf Times) European stock markets and Wall Street swept higher yesterday on higher oil prices and hopes of new Chinese economic stimulus measures, dealers said.
But enthusiasm was capped by uncertainty about a possible deal between major oil producers, and also about central bank policy as investors awaited the minutes of the Federal Reserve's January meeting later yesterday for guidance.
London's FTSE 100 was up 2.7%, Frankfurt's DAX 30 was up 2.7% at 9,377.21 and Paris' CAC 40 was up 3.0% at 4,233.47 at close, whereas EURO STOXX 50 surged 2.7% at 2,896.70 points.
Equities were also trading higher on Wall Street for the third straight session, with the Dow up 1.3% approaching midday.
Briefing.com analyst Patrick O'Hare called Wall Street gains "sentiment driven", saying they appeared to be based on an assumption Iran would limit its oil output in cooperation with other major producers.
Earlier, Asia indices hit reverse after a recent rally, with energy firms down after an oil output freeze deal by top producers Saudi Arabia and Russia left investors disappointed.
Shanghai shares however rallied more than 1%, adding to the previous day's surge, on hopes for fresh stimulus from China's leadership.
And world oil prices firmed as Iran's oil minister started talks yesterday with his Iraqi, Venezuelan and Qatari counterparts as investors watched whether Tehran would follow Saudi Arabia and Russia's pact to freeze output.
The mining sector forged ahead on the brighter outlook for commodity demand from key consumer and Asian powerhouse economy China.
Among London's top gainers was Swiss mining giant Glencore's stock, climbing 14.8% to 118.15 pence, which was boosted by the company announcing the early refinancing of its $8.45bn (‚¬7.6bn) revolving credit facility.
Miner Anglo American saw its shares rocket 17.6% higher to 468.05 pence.
In Milan, shares in Ferrari received a massive boost after financier George Soros said he had acquired a stake in the luxury car maker, closing 10.4% higher at ‚¬34.45.
In Asia an early rally lost steam as profit-takers moved in following some hefty gains on Monday and Tuesday.
Tokyo's Nikkei fell 1.36 after enjoying a more than 7% surge in the previous two sessions, with a stronger yen acting as a millstone.
Hong Kong lost 1%, Sydney ended 0.6% lower and Seoul was 0.2% off.
However, Shanghai added more than 1% - on top of the 3.3% gain on Tuesday - on growing hopes for fresh measures to kick-start the world's number-two economy.
The rally came as reports swirled that China would make more cash available to local authorities to spend on new building projects, which reinforces speculation the government is planning fresh stimulus.
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