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GLOBAL MARKETS-Oil, stocks climb; Draghi remarks raise stimulus hopes

Published 22/01/2016, 03:36 am
© Reuters.  GLOBAL MARKETS-Oil, stocks climb; Draghi remarks raise stimulus hopes
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* U.S. stocks climb in late morning trade

* Oil rebounds after hovering near 12-year lows

* Dollar up against euro after Draghi remarks (Updates with U.S. market opening, changes dateline, previous LONDON)

By Caroline Valetkevitch

NEW YORK, Jan 21 (Reuters) - Oil prices and global stocks rebounded on Thursday, buoyed by comments from European Central Bank President Mario Draghi that raised hopes of further monetary stimulus, following a turbulent few days that wiped trillions of dollars off asset values.

U.S. stocks were up in late morning trading, led by gains in telecommunications, energy and consumer discretionary shares, but trading was again choppy in most asset classes. euro fell to a two-week low against the dollar after Draghi hinted of additional stimulus measures as early as March as economic risks had grown. He cited concerns over China and emerging markets, volatility in financial and commodity markets and geopolitical risks, and said the tumult would prompt a March review of monetary policy. The euro EUR= fell below $1.08 for the first time in two weeks during his speech.

Oil rebounded after falling to a more-than-12-year low the previous day. U.S. crude futures CLc1 were up nearly 1 percent at $28.60 per barrel. On Wednesday, U.S. crude futures fell to their lowest since September 2003. oil prices, which have dropped more than 25 percent since the start of the year, have been a key driver of a recent cross-asset rout.

"The underlying focus is still on oil because people are looking at the transmission mechanism to the real economy of lower oil prices," said Gennadiy Goldberg, interest rate strategist, at TD Securities in New York.

"Lower oil prices are maybe great for the consumer, but not unilaterally good for the U.S economy."

U.S. Treasury debt yields edged lower in choppy trading, weighed by concerns over volatility in oil and global stock markets.

In the equity market, MSCI's all-country world stock index .MIWD00000PUS rose 0.5 percent. Europe's pan-regional FTSEurofirst 300 index .FTEU3 jumped 1.9 percent.

The Dow Jones industrial average .DJI was up 131.35 points, or 0.83 percent, to 15,898.09, the S&P 500 .SPX gained 14.29 points, or 0.77 percent, to 1,873.62 and the Nasdaq Composite .IXIC added 28.56 points, or 0.64 percent, to 4,500.25.

A 3-percent slump in Chinese stocks gave Asia another bruising.

MSCI's 23-country emerging market index notched a 6-1/2 year low and Russia's rouble RUB= tanked almost 5 percent at one point as it set a record low against the dollar for a second day running. China's volatile markets

http://link.reuters.com/myh35w Currencies vs dollar

http://link.reuters.com/tak27s ECB QE projections

http://link.reuters.com/dan83w Oil prices

http://link.reuters.com/beb23v

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