European Equities Climb On Eve Of ECB

European equities climb on eve of ECB

LONDON, (APP - UrduPoint / Pakistan Point News -7th Sept,2016) - Europe's stock markets rose Wednesday on the eve of a meeting by European Central Bank chiefs, expected to keep pumping liquidity into sluggish eurozone economies.

Analysts believe, however, that key interest rates will remain steady, at least until the economic fallout from Britain's vote in June to leave the EU becomes clearer. At the close, London's benchmark FTSE 100 index added 0.2 percent as dealers digested a raft of economic data, some pointing to more resilience in the economy than many had predicted pre-Brexit.

In the eurozone, Frankfurt's DAX 30 and the Paris CAC 40 both ended the day 0.6 percent higher. ECB president Mario Draghi and the decision-making governing council convene in Frankfurt Thursday for their regular policy meeting.

- 'Providing momentum' - ======================== "Expectations of continued support from global central banks is providing the momentum for European markets," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.

"Equity markets would welcome further easing but this remains unlikely," added economist Ana Thaker at trading firm PhillipCapital UK. "Draghi is most likely to continue his 'wait-and-see' approach, with global central banks waiting to assess the economic environment later in the year." Many measures announced by the ECB in March -- when it lowered rates, expanded its quantitative easing stimulus to 80 billion Euros ($90 billion) per month and extended it to buy corporate as well as government bonds, and offered banks new cheap loans -- have yet to take full effect.

Elsewhere, the British pound dived Wednesday following a recent rally, as traders fretted over mixed data in the wake of Britain's EU exit vote in June. Britain's manufacturing output -- which excludes mining and quarrying, electricity, gas and water supply -- dropped by 0.

9 percent in July.

That was the biggest month-on-month decline in one year. Industrial production in Britain meanwhile grew by 0.1 percent, defying expectations for a contraction. - UK's mixed picture - ====================== "While overall data has painted somewhat of a mixed picture with the UK economy showing some resilience, it still may be too early to weigh the impacts of Brexit to the UK economy," said FXTM analyst Lukman Otunuga.

The pound had risen strongly in recent days on better-than-expected data for Britain that was gathered following the June referendum. On Wednesday, Bank of England governor Mark Carney said that because the BoE acted swiftly after the shock Brexit vote, the risk of a recession had receded.

In Asia, traders took a breather after a recent rally, with Tokyo hit by a strong yen. On Wall Street the Dow Jones index was slightly softer as traders waited for Apple's launch of a new iPhone later Wednesday and the Federal Reserve's "Beige Book" report assessing economic conditions around the country to give them direction.

- Key figures around 1545 GMT - =============================== London - FTSE 100: UP 0.2 percent at 6,839.61 (close) Frankfurt - DAX 30: UP 0.6 percent at 10,752.98 (close) Paris - CAC 40: UP 0.6 percent at 4,557.66 (close) EURO STOXX 50: UP 0.7 percent at 3,090.32 New York - DOW: DOWN 0.3 percent at 18,485.46 New York - S&P 500: DOWN 0.2 percent at 2,182.38 Tokyo - Nikkei 225: DOWN 0.4 percent at 17,012.44 (close) Shanghai - Composite: UP 1.22 points at 3,091.93 (close) Hong Kong - Hang Seng: DOWN 0.2 percent at 23,741.81 (close) Pound/dollar: DOWN at $1.3349 from $1.3442 Euro/dollar: DOWN at $1.1239 from $1.1257 late Tuesday Dollar/yen: DOWN at 101.69 Yen from 101.99 yen