US open: Stocks rebound as oil prices rise ahead of key supply data

US stocks rebounded on Wednesday as oil prices gained ahead of a report on US crude inventories.

The Dow Jones Industrial Average increased 0.33%, the S&P 500 rose 0.39% and the Nasdaq gained 0.37% at 1432 GMT.

Oil prices rose before key weekly supply data, with West Texas Intermediate crude up 1.5% to $37.07 per barrel and Brent up 1.5% to $37.07 per barrel.

The US Energy Information Administration releases data on crude inventories at 1530 GMT, which will be closely scrutinised by those concerned about the supply glut.

Data released earlier by the Mortgage Bankers Association showed total mortgage application volume in the US rose 0.2% last week in seasonally-adjusted terms. This compared to a 4.8% drop the previous week.

On the year, mortgage application volumes were up 20%.

Still to come on the macroeconomic calendar, wholesale inventories are due for release at 1500 GMT

Elsewhere, Europe’s main indices were all firmly in the black as investors looked to Thursday’s European Central Bank rate announcement. Market participants are pricing in a 10 basis points cut to the deposit rate and an extension and increase of monthly asset purchases.

On the corporate front, natural pet food company Blue Buffalo Pet Products surged as its fourth quarter results released late on Tuesday beat analysts’ expectations.

Valeant Pharmaceuticals was also on the front foot on news the company is in talks about adding new board members.

Pfizer Inc edged higher as the pharmaceutical company announced that it has entered into a $5bn accelerated repurchase programme with Goldman Sachs to be settled during the second quarter of 2016.

Chipotle slumped after one of its restaurants in Massachusetts was shut down as four employees fell ill, possibly from norovirus.

In currencies, the dollar was 0.13% stronger versus the pound and up 0.56% against the euro and 0.15% higher than the yen.