(MENAFN- AFP) Wall Street and key European markets ventured back into positive territory Thursday, buoyed by strong corporate earnings which outweighed worries about the low oil prices.
European stocks started the day mostly lower as the International Energy Agency (IEA) sent a chilling reminder that the world economy is headed for Brexit-created uncertainty and therefore weaker oil demand.
But investors also took heart from the IEA's assertion that an oil production glut is still set to disappear by the end of the year.
They were also inspired by healthy earnings from China's Alibaba and American retailer Macy's, among others, and a stronger start to New York stocks.
"US stocks are gaining ground in early action, along with European markets, aided by some mostly upbeat global earnings reports, which are overshadowing the recent weakness in crude oil prices," analysts at Charles Schwab said.
Macy's shares rose over 15 percent and Alibaba's stock by more than five percent.
Both Frankfurt and Paris were up by over half a percent, while London pared early losses to trade flat.
"The FTSE 100 underperformed equity benchmarks in Germany and France as post-Brexit concerns highlighted risks for the domestic economy," said Jasper Lawler, analyst at traders CMC Markets.
Wall Street was 0.4 percent higher in early New York business.
- IEA warning -
Citing a weaker outlook for the world economy following Britain's vote to leave the European Union (EU), the IEA on Thursday cut its oil demand growth forecast for 2017.
That weighed on oil prices with benchmark contracts falling in London and New York.
But the IEA added that oil oversupply, which has been weighing on the crude price in recent months, will disappear in the latter part of 2016.
In foreign exchange meanwhile, dollar gains were capped as traders await clearer signals on the timing of a possible US interest rate hike, with expectations that the Fed will move cautiously.
Investors were awaiting also the release of more Chinese economic data -- including industrial output and retail sales -- due this week.
Figures released Tuesday showed China's producer prices fell in July at their slowest rate in nearly two years, fuelling hopes the end of a painful slowdown could be in sight for the world's second-largest economy.
Shanghai's main stocks index fell 0.5 percent on Thursday, dragged down by falls to share prices in small companies.
Elsewhere, South Korea opted to keep its key interest rate unchanged at 1.25 percent -- but the central bank governor held out the prospect of another reduction.
- Key figures at around 1345 GMT -
London - FTSE 100: FLAT at 6,865.03
Frankfurt - DAX 30: UP 0.6 percent at 10,710.71
Paris - CAC 40: UP 0.8 percent at 4,489.00
EURO STOXX 50: UP 0.6 percent at 3,037.83
New York - DOW: UP 0.4 percent at 18,572.88
Tokyo - Nikkei 225: closed for holiday
Shanghai - Composite: DOWN 0.5 percent 3,002.637 (close)
Hong Kong - Hang Seng: UP 0.4 percent at 22,580.55 (close)
Euro/dollar: DOWN at $1.1156 from $1.1183 Wednesday
Pound/dollar: DOWN at $1.2979 from $1.3014
Dollar/yen: UP at 101.34 yen from 101.26 yen
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