World stock markets rebound

LONDON: Global stock markets mostly rebounded Thursday on bargain-hunting following recent losses.

Tokyo recovered from a six-day losing streak and most European indices pushed higher in morning deals.

World equities had dropped on Wednesday as sliding oil prices and doubts over US President Donald Trump's plans for tax cuts prompted investors to lower their risk exposure, traders said.

More generally, the sharp gains seen during October and early November have led to profit-taking on worries about high valuations.

"US equity markets closed at their lowest level in three weeks on Wednesday as concerns about Republicans' ability to pass tax reform plans and an under-pressure energy sector weighed," said Accendo Markets in a note to clients.

Around 1100 GMT, the Frankfurt and Paris stock markets were each up around half a percent compared with the closing levels on Wednesday.

But London was flat, dampened by lacklustre UK retail sales data.

"European investors are still focused on buying the dips," said ETX Capital analyst, Neil Wilson.

"Stocks in Europe have recovered ground in the morning session with the major indices turning higher, arresting a straight seven-session decline since last Thursday."

While British retail sales rebounded in October from September, they fell on an annual basis for the first time in more than four years, with Britons' purchasing power weighed down by a combination of high inflation and weak earnings growth.

"We've been waiting for the pay squeeze to filter through... and at first glance today's numbers aren't good news on that front," said Hargreaves Lansdown economist, Ben Brettell.

In commodities trading, oil prices dipped further after plummeting this week when the energy watchdog the IEA cut its forecast for crude consumption for next year.

That has been compounded by official data pointing to a rise in US stockpiles and the possibility that an OPEC-Russia output cut may not be extended.