(MENAFN- AFP) European stock markets rose on Thursday as investors awaited monetary policy decisions from the ECB and Bank of England and reacted to an upbeat outlook from the US Federal Reserve.
Frankfurt's DAX 30 index advanced 0.43 percent to 9,538.92 points and in Paris the CAC 40 gained 0.32 percent to 4,274.80 points compared with Wednesday's closing values -- and as the European Central Bank prepares to give its latest decisions on eurozone interest rates.In London, the benchmark FTSE 100 index climbed also by 0.32 percent to 6,743.37 points before the conclusion of the BoE's monthly policy meeting at midday.Spain's IBEX 35 jumped 1.06 percent to 10,362.30 points as the eurozone member's long-term borrowing costs fell in its first bond sale of the year and amid signs of financial strengthening across the single-currency bloc.German industrial production meanwhile increased in November, driven by rising activity in the manufacturing sector, official data showed on Thursday. In London, focus was on Christmas trading updates from Britain's biggest retailers."Markets have shrugged off sluggish performance moving into positive territory as traders await two central banks' decisions," noted trader Anita Paluch at Varengold Bank in London."Both BoE and ECB are expected not to change anything in the respective interest rates; what is interesting though is what ECB has to say on the subject of its policy in the context of easing inflation and very sluggish recovery in the (eurozone) region."Low inflation not only means growth is very anaemic, but also poses problems for governments with heavy debt loads."The European Central Bank will not announce any rate changes at its first meeting of 2014 on Thursday, but may have to take more concrete action later, analysts said.The ECB took markets by surprise in November and pared back its central "refi" refinancing rate by a quarter of a percentage point to a record low of 0.25 percent.Ahead of the ECB decision, the Bank of England is set to begin 2014 as it has done in the previous four years, by leaving its main interest rate at a record-low 0.50 percent, analysts predict.The BoE is expected also to maintain its level of cash stimulus pumping around the economy at £375 billion ($616 billion, 452 billion euros), as policymakers await the extent of Britain's growth recovery amid more austerity.In Britain, which is part of the European Union but not the eurozone, the market's focus was also on supermarket giant Tesco, whose share price fell 1.19 percent to 324.5 pence. Tesco earlier said that group sales slid around the all-important Christmas trading period, dealing a fresh blow to Britain's biggest retailer. Euro higher before ECB outcomeIn foreign exchange, the European single currency rose to $1.3617 from $1.3571 late on Wednesday in New York.The euro climbed to 82.73 British pence from 82.52 pence Wednesday. The British pound gained to $1.6458 from $1.6447.Gold prices grew to $1,226.65 an ounce from $1,221 Wednesday on the London Bullion Market.Asian stock markets mostly fell on Thursday following losses on Wall Street, as minutes from the Federal Reserve's recent policy meeting showed officials are confident the US economy can withstand stimulus cuts.Minutes from the Fed's December 17-18 policy meeting showed that US central bank policymakers expect unemployment to continue falling even without the support of its vast bond-buying programme.The meeting concluded with the bank reducing its stimulus -- which has been in place since September 2012 -- by $10 billion to $75 billion in January.
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