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Europe stocks up ahead of ECB rate decision; DAX rises 0.37%

Published 07/08/2010, 07:48 AM
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Investing.com – European stocks were higher on Thursday, ahead of the European Central Banks press conference to announce its benchmark interest rate as traders awaited possible comments on bank stress tests.

During European afternoon trade, the EURO STOXX 50 was up 0.69%; France’s CAC 40 advanced 1.15% and Germany's DAX rose 0.37%.

The ECB was widely expected to leave the benchmark interest rate unchanged at 1.0%.

The press conference was instead expected to focus on stress tests carried out on a large number of euro zone banks, as worries over liquidity levels in the banking sector have dragged on growth in the euro zone.

The banking sector led stocks higher with BNP Paribas and Barclays Plc rallying as Credit Suisse Group recommended investors increase their holdings of bank stocks.

Miners also preformed well with Xstrata, the world’s fourth-largest copper producer, jumping 2.7%, while BHP Billiton, the world’s largest mining company, rose 1.6%.

In London, the FTSE 100 was up 1.32%. Earlier in the day, the Bank of England announced that its monetary policy committee voted to keep the benchmark interest rate at 0.5%.

The outlook for U.S. equity markets, meanwhile, was mixed: Dow Jones Industrial Average futures indicated an increase of 0.05%, S&P 500 futures pointed to a gain of 0.08% and Nasdaq 100 futures indicated a drop of 0.13%.

Later Thursday, the U.S. was to publish key data on initial jobless claims.

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