LONDON: European equities climbed Thursday and oil prices neared $60 per barrel, boosted by US stimulus hopes, vaccine rollouts and upbeat Italian political news, but London gains were capped before a UK interest rate call.

Frankfurt and Paris stocks each won 0.4 percent nearing the half-way mark, as investors shrugged off earlier losses in Asia after turbulent trade the previous week.

"European markets have continued to gain ground... with another positive start, as confidence returns after the turbulence of last week," commented CMC Markets UK analyst Michael Hewson.

Milan rose by 0.2 percent after former European Central Bank chief Mario Draghi accepted a mandate to try and form a new Italian government to lift his country out of coronavirus-induced turmoil.

"Draghi has been asked to form a government of national unity in Italy. He's a highly skilled operator, a consummate politician and we know he'll do 'whatever it takes' to steer Italy out of its worst economic and health crisis since the war," said Markets.com analyst Neil Wilson.

At the same time, London stocks crept higher with the Bank of England poised to maintain its key interest rate at an ultra-low level of 0.1 percent in a decision due at 1200 GMT.

The British central bank could inject more stimulus cash, with the economy set to enter a double-dip recession with an anticipated virus-driven contraction in the first quarter.

"We can expect little in the way of change on the monetary policy front, despite the prospect of a technical recession for the UK economy," Hewson noted.

"With Brexit now in the rear-view mirror and the prospect that with a successful vaccine rollout we could well see a strong summer rebound, ahead of Europe, the central bank is likely to focus on that."

The BoE will also issue its latest economic forecasts -- and is expected to reveal the outcome of its feasibility study into negative rates.

That could potentially pave the way for borrowing costs to fall below zero later this year.

In commodities meanwhile, world oil prices continued to barrel their way closer to the key $60 dollar level, with economic recovery hopes boosted by vaccine rollouts.

An upbeat global outlook pushed oil higher, with top producers sounding a note of optimism for demand this year as lockdowns are eased and activities slowly resume.

After lockdowns began to spread towards the end of last year's first quarter, oil prices dropped off a cliff and even briefly turned negative.

Prices then rebounded sharply however and this week attained levels last seen before the pandemic erupted, with Brent not too far from $60 per barrel.

Elsewhere, Asian stocks fell as investors took a breather from a broad three-day rally, but upbeat economic data, US stimulus expectations and positive signs on the coronavirus and vaccine fronts still provided some support.

Key figures around 1115 GMT -

London - FTSE 100: UP 0.1 percent at 6,513.79 points

Frankfurt - DAX 30: UP 0.4 percent at 13,983.30

Paris - CAC 40: UP 0.4 percent at 5,584.25

Milan - FTSE MIB: UP 0.2 percent at 22,582.98

EURO STOXX 50: UP 0.2 percent at 3,617.39

Tokyo - Nikkei 225: DOWN 1.1 percent at 28,341.95 (close)

Hong Kong - Hang Seng: DOWN 0.7 percent at 29,113.50 (close)

Shanghai - Composite: DOWN 0.4 percent at 3,501.86 (close)

New York - Dow: UP 0.1 percent at 30,723.60 (close)

Euro/dollar: DOWN at $1.1986 from $1.2036 at 2200 GMT

Dollar/yen: UP at 105.23 yen from 105.03 yen

Pound/dollar: DOWN at $1.3587 from $1.3647

Euro/pound: UP at 88.22 pence from 88.19 pence

West Texas Intermediate: UP 0.7 percent at $56.09 per barrel

Brent North Sea crude: UP 0.6 percent at $58.80 per barrel