Investing.com – European stock markets were broadly higher on Thursday, ahead of a widely expected interest rate hike by the European Central Bank later in the day, while U.S. futures indexes pointed to a higher open on Wall Street.
During European morning trade, the EURO STOXX 50 advanced 0.55%, France’s CAC 40 rose 0.6%, while Germany’s DAX 30 gained 0.5%.
The ECB was expected to raise its benchmark interest rate by 0.25% to 1.5% at its policy setting meeting later Thursday, after ECB President Jean-Claude Trichet said last week that the bank was in “strong vigilance mode.”
Shares in the financial sector were mixed, with peripheral lenders Banco Santander and Unicredit down 0.7% and 0.5% respectively, while Deutsche Bank and Societe Generale each gained 0.4%.
Shares in the world’s largest maker of essential chemicals Solvay jumped 2.75% after UBS upgraded the stock to ‘buy’, saying the planned acquisition of French rival Rhodia will produce a big jump for earnings and create a platform for further growth.
French water utilities Veolia Environnement and Suez Environnement were up 1.1% and 1% respectively after Credit Suisse initiated coverage of both stocks with an ‘outperform’ rating.
On the downside, Germany’s largest steelmaker ThyssenKrupp slumped 3.8% after it said it planned to raise as much as EUR1.7 billion by selling nearly 49.5 million shares in a move to reduce its debt.
In London, the FTSE 100 rose 0.5% ahead of the Bank of England’s interest rate announcement, which was widely expected to leave rates on hold.
Shares in hedge fund manager Man Group jumped 3% after reporting revenue of USD9 billion in the second quarter. Assets under management rose to USD71 billion at the end of June, from USD69.1 billion three months earlier.
Commodity-linked shares were higher after metal prices advanced, boosting earnings prospects for miners. Rio Tinto shares gained 1.75%, Xstrata saw shares climb 1.5%, while BHP Billiton rose 1.3%.
The outlook for U.S. equity markets was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.25%, S&P 500 futures added 0.3%, while the Nasdaq 100 futures edged 0.35% higher.
Later in the day, U.S. payroll processing firm ADP was to publish a report on non-farm payrolls, while the country was also to release its weekly report on initial jobless claims.
During European morning trade, the EURO STOXX 50 advanced 0.55%, France’s CAC 40 rose 0.6%, while Germany’s DAX 30 gained 0.5%.
The ECB was expected to raise its benchmark interest rate by 0.25% to 1.5% at its policy setting meeting later Thursday, after ECB President Jean-Claude Trichet said last week that the bank was in “strong vigilance mode.”
Shares in the financial sector were mixed, with peripheral lenders Banco Santander and Unicredit down 0.7% and 0.5% respectively, while Deutsche Bank and Societe Generale each gained 0.4%.
Shares in the world’s largest maker of essential chemicals Solvay jumped 2.75% after UBS upgraded the stock to ‘buy’, saying the planned acquisition of French rival Rhodia will produce a big jump for earnings and create a platform for further growth.
French water utilities Veolia Environnement and Suez Environnement were up 1.1% and 1% respectively after Credit Suisse initiated coverage of both stocks with an ‘outperform’ rating.
On the downside, Germany’s largest steelmaker ThyssenKrupp slumped 3.8% after it said it planned to raise as much as EUR1.7 billion by selling nearly 49.5 million shares in a move to reduce its debt.
In London, the FTSE 100 rose 0.5% ahead of the Bank of England’s interest rate announcement, which was widely expected to leave rates on hold.
Shares in hedge fund manager Man Group jumped 3% after reporting revenue of USD9 billion in the second quarter. Assets under management rose to USD71 billion at the end of June, from USD69.1 billion three months earlier.
Commodity-linked shares were higher after metal prices advanced, boosting earnings prospects for miners. Rio Tinto shares gained 1.75%, Xstrata saw shares climb 1.5%, while BHP Billiton rose 1.3%.
The outlook for U.S. equity markets was upbeat. The Dow Jones Industrial Average futures pointed to a gain of 0.25%, S&P 500 futures added 0.3%, while the Nasdaq 100 futures edged 0.35% higher.
Later in the day, U.S. payroll processing firm ADP was to publish a report on non-farm payrolls, while the country was also to release its weekly report on initial jobless claims.