European markets set to rally amid earnings; oil prices hit multi-year highs

European markets are set to rise on Thursday morning, as soaring oil prices triggered a broader rally across commodities.

The FTSE 100 is seen 12 points higher at 7,321, the CAC is expected to open up around 13 points at 5,392 and the DAX is poised to start 11 points higher at 12,607, according to IG.

Oil prices hit highs not seen since late 2014 on Thursday, following reports OPEC kingpin Saudi Arabia would be content to see crude prices surge up to $100 a barrel over the coming months.

This appeared to embolden a view among price hawks that Riyadh would continue to seek no changes to a global supply-cutting deal despite major producers edging closer to the agreement’s original target.

Another catalyst for an uptick in crude futures was thought to stem from the prospect of sanctions on Russia. Elevated fears that sanctions could hit supplies lifted aluminum and nickel prices to multi-year highs on Thursday.

Elsewhere, the International Monetary Fund (IMF) said Wednesday that governments worldwide should take action to try to reduce their indebtedness while the going is relatively good.

The Washington D.C.-based institute said lawmakers should seek to build buffers and cut public debt levels in order to tackle “challenges that will unavoidably come in the future.”

Meanwhile, Asian equities rallied on the back of soaring energy stocks. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was up almost 1 percent — led higher by a 2.9 percent rise in basic materials.

Back in Europe, Vivendi, ABB and Unilever are among the major companies set to release their latest figures on Thursday morning.

On the data front, Germany’s Ifo economic institute is due to publish its business climate index at around 9 a.m. London time. Source: CNBC