The Fort Worth Press - Stocks climb on stimulus hopes; pound gets 'Boris bounce'

Oil prices jumped around five percent as supply concerns added to stimulus hopes.

Meanwhile the euro struck a fresh 20-year low versus the dollar as the minutes from the latest ECB meeting showed it is happy to go slow with hiking interest rates.

Analysts pointed to reports suggesting China is considering bringing forward about $220bn of infrastructure spending as boosting both commodities prices as well as sentiment on equities markets.

"News of a huge stimulus drive in China has helped lift commodities across the board," said Fiona Cincotta at City Index.

Wall Street was in positive territory in late morning trading, with the Dow adding 0.8 percent.

In Europe, Paris stocks climbed 1.7 percent and Frankfurt jumped 2.0 percent higher.

London's blue-chip FTSE 100 stock index rose 1.1 percent, with gains accelerating after Johnson announced his resignation.

- Pound gets 'Boris bounce' -

Johnson's resignation also sent the pound climbing, rising above the $1.20 level.

"Sterling is revelling in what is probably its last ‘Boris bounce’, moving up against the dollar and the euro as the political crisis of the past few days subsides," said Chris Beauchamp, chief market analyst at online trading platform IG.

"The currency market is relieved that Johnson is finally resigning, removing some of the political uncertainty that was priced into the pound and paving the way for a new prime minister," said Victoria Scholar, head of investment at Interactive Investor.

The euro meanwhile remained struck a fresh 20-year low $1.0156.

The European single currency is being hammered by growing fears of a recession for the eurozone and the likelihood of more aggressive US interest-rate hikes.

That concern was validated by release yesterday of minutes from the latest US Federal Reserve meeting that indicated it plans to push forward with further considerable hikes.

Meanwhile, minutes of the latest ECB meeting indicated it was looking at taking a more gradual approach, even if it warned it could move faster if it deemed necessary.

Oil prices jumped more than five percent after having briefly fallen under $100 per barrel this week.

In addition to Chinese stimulus hopes, supply concerns played a part as a majority of Kazakhstan's oil imports could be blocked by a Russian court order due to environmental concerns at the port of Novorossisyk.

- Key figures at around 1530 GMT -

New York - Dow: UP 0.8 percent at 31,272.31 points

EURO STOXX 50: UP 2.0 percent at 3,488.50

London - FTSE 100: UP 1.1 percent at 7,189.08 (close)

Frankfurt - DAX: UP 2.0 percent at 12,843.22 (close)

Paris - CAC 40: UP 1.6 percent at 6,006.70 (close)

Tokyo - Nikkei 225: UP 1.5 percent at 26,490.53 (close)

Hong Kong - Hang Seng Index: DOWN UP 0.3 percent at 21,643.58 (close)

Shanghai - Composite: UP 0.3 percent at 3,364.40 (close)

Pound/dollar: UP at $1.2003 from $1.1921 Wednesday

Euro/pound: DOWN at 84.65 pence from 85.43 pence

Euro/dollar: DOWN at $1.0159 from $1.0186

Dollar/yen: DOWN at 135.92 yen from 135.93 yen

Brent North Sea crude: UP 5.2 percent at $105.89 per barrel

West Texas Intermediate: UP 5.7 percent at $104.14 per barrel

L.Coleman--TFWP