European, US stocks rise awaiting OPEC decision

Hong Kong (AFP) - European stocks rebounded on Wednesday, brushing aside a broad retreat across Asia, as oil prices pushed higher and Deutsche Bank shares rose, recouping some of their previous days' losses.

London's benchmark FTSE 100 index increased by 0.9 percent. In the eurozone, Frankfurt's DAX 30 and Paris CAC 40 each gained 1.2 percent compared with closing levels on Tuesday.

In foreign exchange, the euro was up slightly at $1.1218.

Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, said traders were closely watching an OPEC meeting in Algiers Wednesday to tackle a global supply glut.

"Although an agreement to curb output today would be a major surprise, the debate may pave the way for a potential deal at their next meeting," she said.

Oil prices rebounded, -- with benchmark Brent North Sea crude up 1.7 percent at $46.75 a barrel, -- sending US stocks moderately higher after opening.

Crude prices slumped Tuesday as Iran ruled out an imminent agreement with other major oil producers to even maintain current output levels, let alone trim them back, amid regional rivalry with Saudi Arabia.

Excess oil supplies have weighed heavily on prices since 2014.

"Oil prices have been particularly volatile as of late as traders have sought to pick apart comments from OPEC members and other large oil producers and determine whether a deal on an output freeze is any more likely than it?s been in the past," said Oanda market analyst Craig Erlam.

"Producers have made every effort to talk up a deal in recent weeks and at times markets have taken the bait but it looks as though once again they?re going to fall short."

Shares in Deutsche Bank rose just over 3 percent in mid afternoon trading as the German government and bank sought to quash speculation of a rescue plan for the troubled lender.

Its shares sank to a record low this week on reports that Germany's biggest bank had asked Berlin for help after US authorities demanded a $14-billion fine over the subprime mortgage crisis.

On the corporate front, sports gear giant Nike shares dropped 1.1 percent after its fiscal first-quarter report showed slumping orders and mounting inventory.

And investors cheered news that ailing Canadian smartphone pioneer BlackBerry would stop making its own handsets and outsource the job to an Indonesian company, pushing its shares six percent higher.

Elsewhere, Tokyo's Nikkei stocks index closed down 1.3 percent, with a stronger yen dampening buying appetite.

- Key figures at 1350 GMT -

London - FTSE 100: UP 0.9 percent at 6,871.59 points

Frankfurt - DAX 30: UP 1.2 percent at 10,488.61

Paris - CAC 40: UP 1.2 percent at 4,450.66

EURO STOXX 50: UP 1.2 percent at 3,005.08

New York - DOW: UP 0.2 percent at 18,266.82

Tokyo - Nikkei 225: DOWN 1.3 percent at 16,465.40 (close)

Hong Kong - Hang Seng: UP 0.2 percent at 23,619.65 (close)

Shanghai - Composite: DOWN 0.3 percent to 2,987.86 (close)

Euro/dollar: UP at $1.1218 from $1.1217 late Tuesday

Dollar/yen: UP at 100.52 yen from 100.36 yen

Pound/dollar: DOWN at $1.3010 from $1.3011