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European stocks rose on Thursday as investors waited with interest for a European Central Bank rate call that could become the latest global monetary policy institution to pave the way for further monetary stimulus.
However, wider concerns over the threat posed by the international trade dispute to global economic growth limited overall gains after a mixed track of Asian equities.
Stoxx 600 on a European scale climbed 0.4% as resource stocks were in demand. The London FTSE 100 gained 0.4%, the Frankfurt Xetra Dax 30 0.3%.
ECB policymakers are meeting after a series of sweeping moves by central banks in response to growing concerns over global growth. The health of the euro area economy, including a sharp slowdown in inflation and mixed economic data, was likely to set the tone for the announcement.
The euro remained stable at 1.1230 USD, leaving its fall for 2019 at just over 2%.
"The market is already considering a possibility of reducing ECB rates and tells us at the same time that this is not enough to raise inflation expectations. If the ECB wants to retaliate, it must be implied that quantitative easing can be revived.
Jamie Searle, European rate strategist at Citi
Meanwhile optimism has dissipated over the fact that the United States and Mexico could reach an agreement in order to avoid the proposed tariffs and the subsequent escalation of global trade tensions. US President Donald Trump tweeted that while the talks on the limits of immigration were progressing, it was not "enough".
The IMF has warned that the extent of trade disputes in the United States will dampen global growth next year, as weaker-than-expected data on the US labor market suggests a relaxation of monetary policy in the United States. Federal Reserve.
In Japan, Topix lost 0.3% and the CSI 300 in mainland China slipped 0.9%.
The futures on the S & P 500 index expected gains of 0.2% when Wall Street opened Thursday after rising 0.9% overnight, an increase of nearly 3% since the US Federal Reserve has shown willingness to reduce its interest rates.
Instantaneous
To come up
- 10:00: Eurozone growth and employment data for the first quarter
- 12.45: ECB decision on interest rates
- 1:30 pm: US trade balance data (every hour in London)
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Markets Briefing is an overview of global markets, updated throughout the trading day by Financial Times journalists in Hong Kong, New York and London. Return of information? Write in the comments below or send us an email.
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