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Stock markets rise as recovery continues | |
(about 2 hours later) | |
Shares across Europe have risen, helped by a rally in oil prices and hopes of more stimulus action by central banks. | |
London's FTSE 100 index was nearly 2% higher, with share indexes elsewhere in Europe showing similar gains. | |
Shares had risen strongly on Thursday, following hints from the European Central Bank that it was considering more action to boost the eurozone's economy. | |
The share rises come at the end of a turbulent week for the markets. | |
Stock markets had dived earlier in the week as investors fretted over falling oil prices and prospects for China's economy. | |
Draghi impact | |
In London, the benchmark FTSE 100 share index was up 101.62 points, or 1.8%, at 5,875.41 in morning trade. | |
Elsewhere in Europe, Germany's Dax index was up 1.7% while in France the Cac 40 index was 2.8% higher. | |
The recovery in stocks had begun on Thursday, following a press conference from European Central Bank (ECB) president Mario Draghi. | |
After the ECB had kept eurozone rates on hold, Mr Draghi hinted that the bank might take more action to try to stimulate the eurozone economy later this year. | After the ECB had kept eurozone rates on hold, Mr Draghi hinted that the bank might take more action to try to stimulate the eurozone economy later this year. |
He said the bank would "review and possibly reconsider" monetary policy at its next meeting in March. | He said the bank would "review and possibly reconsider" monetary policy at its next meeting in March. |
Mr Draghi also said eurozone rates would "stay at present or lower levels for an extended period" and there would be "no limits" to action to boost the eurozone. | Mr Draghi also said eurozone rates would "stay at present or lower levels for an extended period" and there would be "no limits" to action to boost the eurozone. |
Earlier on Friday, Japan's Nikkei index had jumped by nearly 6%. The market there had been lifted by speculation that the Bank of Japan was considering a fresh wave of stimulus measure to try to boost the economy. | |
Oil rebound | |
Markets have also been encouraged by a recovery in oil prices. | |
Earlier this week the price of oil fell to 12-year lows - around $27 a barrel - after the International Energy Agency warned that oil markets could "drown in oversupply" in 2016. | |
However, on Friday the price of Brent crude was up $1.50 on the day at $30.75 a barrel, while US crude was $1.26 higher at $30.79 a barrel. | |
The prospect of colder weather in the US and Europe was being cited as one factor behind the rise. | |
The US east coast is expected to be hit by a huge blizzard later on Friday. |