Europe midday: Stocks in the black as resources advance

At midday, the benchmark Stoxx Europe 600 index and France’s CAC 40 were up 1%, while Germany’s DAX was 0.8% firmer.

At the same time, oil prices were a little higher in choppy trade amid political instability in Nigeria, where the country’s petroleum installations are being attacked.

West Texas Intermediate was up 0.4% to $48.33 a barrel and Brent crude was 0.1% higher at $48.88.

“Traders are looking to unwind many of their positions as we close out the week, with the notable trends that have dominated the markets this week coming under pressure. Hesitancy within the recent US dollar strength and a reversal of yesterday’s stock market weakness sees markets likely to finish the week at less extreme levels,” said Joshua Mahony at IG.

“Ultimately, the fact is that while a June hike is increasingly credible, it is still the least likely of their two options. With huge economic implications to the Brexit vote, it is unlikely we will see any action from the Fed next month.”

On Thursday, stocks in the US and Europe lost ground as investors digested hawkish minutes from the Federal Reserve and comments by New York Fed President William Dudley and Fed Reserve Bank of Richmond President Jeffrey Lacker.

Basic resources – which were hit hard on Thursday as the dollar rose on Fed rate-hike expectations – were among the best performers as the US currency eased back. The Stoxx 600 sub-index for the sector pushed up 2.3%.

A stronger greenback makes dollar-denominated commodities more expensive for holders of other currencies.

In corporate news, Unicredit rallied on press reports the Italian lender is reviewing a plan to sell assets to boost its capital base.

Babcock edged higher after announcing that its joint venture with Lockheed Martin, Ascent Flight Training, has been awarded a contract by the Ministry of Defence to deliver the rotary wing element of the UK Military Flying Training System.

Bookie Ladbrokes surged in London after the competition watchdog said it and Gala Coral may have to close up to 400 shops if the merger between the two is to go ahead. The number was lower than expected and investors were relieved the merger would be able to proceed.

On the downside, Cartier owner Richemont was under the cosh after it posted an increase in full-year profit but warned of a challenging outlook.