logo
Plus   Neg
Share
Email

European Stocks May Open Slightly Higher, BOE, ECB Policies In Focus

European stocks may edge higher in early trades on Thursday, tracking a positive lead from Asian markets where stocks were mostly higher amid optimism that trade tensions between the U.S. and China, the world's two largest
economies, will ease.

According to reports, the U.S. is in the early stages of proposing a new round of trade talks with China in the near future. The U.S. Treasury Secretary Steven Mnuchin has reportedly sent an invitation for talks to senior Chinese
officials, proposing a meeting in the next few weeks.

But the main focus in European markets today will be on the monetary policy announcements from the Bank of England and the European Central Bank.

BoE's nine-member Monetary Policy Committee, led by Governor Mark Carney, which will announce its policy at 7.00 am ET., is widely expected to keep the key rate unchanged at 0.75 percent and quantitative easing at GBP 435 billion.

The European Central Bank, which is scheduled to release its policy at 7.45 am ET., is also expected to maintain its refi rate at 0.00 percent and the deposit rate at -0.4 percent.

Investors will closely track the ECB President Mario Draghi's customary press conference at 8.30 am ET, for clues about the central bank's future course of action.

In other economic events, Destatis will release a report on Germany's final consumer prices for August, at 2.00 am ET. Final inflation is seen at 2 percent, in line with flash estimate.

At 2.45 am ET, France's Insee will release final consumer price data. The statistical office is expected to confirm 2.3 percent consumer price inflation for August.

Swiss producer and import price figures are due at 3.15 am ET. Producer and import prices may have climbed 3.4 percent annually in August, following July's 3.6 percent increase, according to economists.

Data on Sweden's second quarter GDP, Greece's unemployment figures in the second quarter, Turkish central bank's rate decision are also due today.

On Wednesday, European markets were mostly moving sideways. Although several markets in the region managed to close with gains, buying interest was subdued with investors largely staying cautious due to trade concerns and appeared to wait for the monetary policy announcements from the Bank of England and European Central Bank.

The DAX of Germany climbed 0.52 percent and the CAC of France rose 0.91 percent, while the U.K.'s FTSE 100 gained 0.55 percent.

Asian stock markets, with the exception of Australia, are higher on Thursday following news that the U.S. is in the early stages of proposing talks a new round of trade talks with China in the near future.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Market Analysis

Follow RTT