European stocks up as oil rallies

Stocks in Europe were higher on Friday (February 5th) ahead of the monthly US jobs report, while oil rallied somewhat as hopes grew of a deal between OPEC and Russia to stem production.

The FTSE 100 rose half a per cent in London, with Anglo American up more than nine per cent, adding to its 20 per cent gain on Thursday. Despite these gains, the stock remains 70 per cent down on where it was this time last year.

In Germany, the DAX was steady, rising 0.1 per cent, while the CAC 40 in France put on 0.55 per cent in the morning session.

It came after a better day for US markets on Thursday saw the Dow Jones industrial average rise 0.5 per cent. Overnight saw another weak session for Japanese stocks, with the Nikkei 225 closing out the week on 16,819.59, down another 1.3 per cent for the day.

Traders were looking ahead to key US jobs data later, with the monthly non-farm payrolls report watched for its impact on Federal Reserve policy.

Oil gained, with US light crude up one per cent above the $32 handle as the dollar came under pressure. A weaker dollar has lifted oil away from multi-year lows struck in January. Brent added 0.85 per cent to trade at $34.75.

The greenback was on course for its worst weekly loss since 2009, as investors see the Fed taking a slower course to raise rates this year.

New York Fed president William Dudley warned this week about tightening financial conditions and the risks to the US economy of a stronger dollar.

EUR/USD was trading just below 1.12, a little way off Thursday’s three-month high. USD/JPY slipped below the 117 handle after starting the week above 121.