Portugal Colonial - Oil wavers, stocks rise as attention turns to US Fed

The US Federal Reserve is expected to hold interest rates steady later in the day, as investors look for signals on how policymakers assess the inflationary impact of higher oil prices.

The European Central Bank, Bank of England and Bank of Japan are also expected to leave borrowing costs unchanged on Thursday.

"The Fed is expected to remain on hold, but it will be the tone of the Fed statement and (Fed boss) Jerome Powell's press conference that will determine the market reaction," said Kathleen Brooks, research director at trading group XTB.

The main US oil contract West Texas Intermediate fell 1.8 percent -- after plunging four percent in Asian trading -- while international benchmark Brent was flat.

The moves followed Iraq's announcement that it had resumed limited oil exports through the Turkish port of Ceyhan, using a pipeline that avoids the effectively shut Strait of Hormuz, through which a fifth of global oil flows.

Even so, prices remained around $100 a barrel, as a fresh wave of Israeli-US strikes hit across Iran while Tehran struck Israel and crude-producing Gulf neighbours.

"Talk of a deal between Iraq and Turkey to restart oil supplies has helped to calm financial markets," said Russ Mould, investment director at AJ Bell.

But "getting the commodity value significantly lower still depends on resolving issues around the Strait of Hormuz," he added.

The Frankfurt and Paris stock markets piled on around one percent toward midday, while London also gained.

Asian stocks climbed after a positive session on Wall Street, which was supported by tech giants including Apple and Amazon.

Seoul jumped more than five percent, driven by chip giants Samsung and SK hynix. The Kospi, however, remains more than six percent down from the record highs touched before the war broke out.

Tokyo was up 2.9 percent, while Hong Kong and Shanghai also advanced.

Analysts warned that the positive mood in markets could fade if the Middle East crisis drags on.

The US military said it brought out some of the heaviest bombs in its arsenal to penetrate missile sites near to the Strait of Hormuz that threatened international shipping.

Iran has vowed revenge after Israel announced it had killed security chief Ali Larijani, a key force leading Iran since the death of Supreme Leader Ayatollah Ali Khamenei in the first strikes of the war.

Israel also hit a central Beirut neighbourhood as it looks to take out the Iran-backed Hezbollah.

- Key figures at around 1115 GMT -

Brent North Sea Crude: FLAT at $103.46 per barrel

West Texas Intermediate: DOWN 1.8 percent at $94.45 per barrel

London - FTSE 100: UP 0.4 percent at 10,446.12 points

Paris - CAC 40: UP 1.1 percent at 8,063.10

Frankfurt - DAX: UP 0.9 percent at 23,935.65

Tokyo - Nikkei 225: UP 2.9 percent at 55,239.40 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 26,025.42 (close)

Shanghai - Composite: UP 0.3 percent at 4,062.98 (close)

New York - Dow: UP 0.1 percent at 46,993.26 (close)

Euro/dollar: UP at $1.1551 from $1.1536 on Tuesday

Pound/dollar: UP at $1.3367 from $1.3352

Dollar/yen: DOWN at 158.92 yen from 159.05 yen

Euro/pound: UP at 86.43 pence from 86.38 pence

V.F.Barreira--PC