However, these gains are proving short-lived as an Iranian rebuttal of oil production cuts saw oil prices drag the index lower. The feeling is that markets are treading on thin ice in this recent rally, knowing that at any moment crude prices can crash lower, taking the FTSE with it.
The release of weaker-than-expected eurozone CPI readings this morning heightened expectations of European Central Bank action in March. However, this perceived dovish ECB outlook was complimented by the fact that Federal Reserve funds futures are now pricing in zero US rate hikes in 2016. So much for the four that were speculated at the December meeting.
Iran effectively dashed any hope of a Russian-engineered cut across both OPEC and non-OPEC members this afternoon, by announcing that it does not support the idea of an emergency meeting or cut to production. Unsurprisingly for a country that has been champing at the bit to get its oil production back to full operational status, Iran has little desire to cut back immediately.
Tensions between Saudi Arabia and Iran mean that the threat of Iran taking market share in the face of Saudi cuts will mean next to no chance of a Saudi reduction.