European shares get commodities boost, Credit Suisse slumps

jueves 4 de febrero de 2016 06:14 GYT

* FTSEurofirst 300 index gains 0.6 percent

* Commodities shares among top gainers

* Credit Suisse slumps after reporting losses

By Atul Prakash

LONDON, Feb 4 (Reuters) - European shares climbed higher on Thursday, with commodities-related shares surging after a sharp decline in the U.S. dollar that made dollar-priced crude oil and metals cheaper for those using other currencies.

However, Credit Suisse slumped nearly 12 percent, the biggest loss in the FTSEurofirst 300 index. The bank posted its first full-year loss since 2008 after it booked a big impairment charge for its investment banking business under new Chief Executive Tidjane Thiam.

The dollar fell after New York Federal Reserve President William Dudley said financial conditions had tightened and the Fed would have take into account a weakening outlook for the global economy. His remarks raised doubts about the pace of future U.S. interest rate increases.

"Now we see that the U.S. dollar has broken down quite significantly and based on the cross-asset correlation, that certainly helps commodity prices and stocks," said Gerhard Schwarz, head of equity strategy at Baader Bank in Munich.

The FTSEurofirst 300 index was up 0.6 percent at 1,303.32 points by 0947 GMT after trading in a wide range of 1,290.91-1,310.59 points earlier in the session, a day after the index fell 1.6 percent.   Continuación...