Jornal Do Brasilia - Global stocks, oil rise tracking company earnings, data

Investors looked ahead to minutes from the last Federal Reserve rates meeting for clues on the outlook for US borrowing costs.

More than two hours into trading on Wall Street the Dow stood 0.6 percent in the green while the tech-heavy Nasdaq advanced 1.3 percent, traders buoyed by data showing industrial production rose more than analysts expected in January, according to the Federal Reserve, as manufacturing output saw its biggest gain in nearly a year.

But uncertainty hung over the session regarding the eventual outcome of Washington's Oman-mediated Iran talks on a deal to avoid conflict -- while fears still abound on the direction of travel and the consequences of massive AI investment.

Weakness in technology shares has been a headwind for much of the year to date as investors weigh concerns about lofty AI capital spending and the fallout of the technology on legacy software firms.

"This move in concerns about AI disruption certainly has gotten stretched," said Art Hogan of B. Riley Wealth Management. "Folks that look at the amount of selling that's happened already since last quarter might think that it has been overdone."

On Iran, "reports pointing to major military action naturally raise the risk of some kind of closure of the Hormuz straits, and while an oil rally has been an off again/on again move for some weeks, sustained action in the region is likely to precipitate a significant move higher in prices," observed Chris Beauchamp, chief market analyst at investing and trading platform IG.

Among individual companies, Nvidia rose 2.2 percent after announcing a multi-year venture to supply AI chip technology to Meta's infrastructure buildout.

Moderna jumped 5.9 percent after announcing that the US Food and Drug Administration would review its seasonal influenza vaccine in a reversal of an earlier decision by the agency.

Despite the geopolitical and technological uncertainty, European shares enjoyed a strong session.

London's FTSE 100 shares index led continental gains at the close with a rise of 1.2 percent after data showed UK inflation eased in January, paving the way for the Bank of England to cut its benchmark interest rate next month, weighing on the pound.

"Lower rates typically translate into weaker sterling which, in turn, flatters the overseas earnings which dominate the (FTSE 100) index," said AJ Bell investment director Russ Mould.

Shares in BAE Systems jumped four percent in London after the British military equipment maker reported a rise in annual net profit and a record order backlog.

London-listed shares in Swiss resources giant Glencore raced 4.7 percent ahead as it announced a return to profit last year.

Paris's CAC 40 set a new record high for its part, moving just past its previous mark of 8,437.35 set on February 12 before settling back a smidgin for a day gain of 0.8 percent while Frankfurt closed up 0.9 percent.

Tokyo's stock market closed up one percent after Washington announced a first tranche of investments by Japan following a pledge totalling $550 billion in a trade deal with US President Donald Trump.

The commitments of $36 billion for three infrastructure projects came as Japan comes under pressure to deliver on its pledges made in 2025 in return for lower US trade tariffs.

Elsewhere in Asia, the Lunar New Year holiday meant trading floors were shut in Hong Kong, Shanghai, Seoul and Taipei.

The euro dipped against the dollar on a report from the Financial Times that Christine Lagarde would step down before her term as European Central Bank president ends in October 2027.

An ECB spokesperson said Wednesday that Lagarde had taken no decision on leaving before her term expires.

The jump in oil prices came as Washington and large crude producer Iran pursued their discussions on the Islamic republic's nuclear programme while US Energy Secretary Chris Wright warned earlier that the US will deter Iran from acquiring nuclear weapons "one way or the other."

Prices had fallen the previous day after Iran made upbeat comments.

But US Vice President JD Vance said Tehran had not yet acknowledged all of Washington's red lines.

- Key figures at around 1640 GMT -

New York - Dow: UP 0.6 percent at 49,814.74 points

New York - S&P 500: UP 0.8 percent at 6,899.58

New York - Nasdaq: UP 1.3 percent at 22,857.96

London - FTSE 100: UP 1.2 percent at 10,686.18 (close)

Paris - CAC 40: UP 0.8 percent at 8,429.03 (close)

Frankfurt - DAX: UP 0.9 percent at 25,278.21 (close)

Tokyo - Nikkei 225: UP 1.0 percent at 57,143.84 (close)

Hong Kong - Hang Seng Index: closed for holiday

Shanghai - Composite: closed for holiday

Dollar/yen: UP at 154.34 yen from 153.29 yen on Tuesday

Euro/dollar: DOWN at $1.1814 from $1.1854

Pound/dollar: DOWN at $1.3535 from $1.3568

Euro/pound: DOWN at 87.21 pence from 87.37 pence

Brent North Sea Crude: UP 3.0 percent at $69.48 per barrel

West Texas Intermediate: UP 3.2 percent at $64.35 per barrel

L. Araujo--JDB