(MENAFN- AFP) Eurozone stock markets moved higher Wednesday as investors hoped for hints of extra stimulus from the European central bank, while a clutch of US company earnings boosted US stocks.
"Equities have found renewed bullish gusto ... as investors contemplate upcoming central bank action," said Mike van Dulken, head of research at traders Accendo Markets.
In mid afternoon deals, London was little changed, at 0.05 percent up, as dealers digested news that Britain's unemployment rate sat at a 11-year low of 4.9 percent.
But in the eurozone, Frankfurt shares rose 1.3 percent and Paris followed, at 0.8 percent higher.
Analysts expect the ECB to hold fire on monetary policy Thursday but to likely prepare the ground for more stimulus in September, as the economic fallout from Brexit becomes clearer.
The central bank meeting takes place one month after Britain voted to quit the European Union.
"On Thursday, (ECB chief) Mario Draghi is likely to indicate the ECB is willing to 'do what it takes' if Brexit interrupts the fragile European economic recovery," said CMC Markets analyst Jasper Lawler.
He noted however that the FTSE has traded relatively flat ever since the Bank of England left its key interest rate unchanged last week, confounding expectations for a cut.
The BoE did however flag a likely rate reduction for August.
"One of the catalysts for the rally in share prices since the Brexit vote has been the expectation of monetary stimulus," said Lawler.
"Those expectations were significantly dampened after the Bank of England caught markets by surprise."
- IMF gloom -
Solid earnings from Microsoft helped propel US stocks higher, taking the Dow Jones Industrial Average past its all-time high.
The index has closed at a new record on each of the last six trading days.
Elsewhere, Japanese stocks fell, also after six straight days of gains, while most other Asian markets moved cautiously, a day after a cut in the International Monetary Fund's world growth forecast.
The Nikkei in Tokyo had surged more than 10 percent during its recent rally -- fuelled by hopes for stimulus measures as well as a weaker yen -- and investors decided it was time to cash in.
The index ended down 0.3 percent in Wednesday deals.
On Tuesday the IMF lopped 0.1 percentage point off its global economic growth forecast for both this year and next.
It blamed Britain's June 23 shock EU exit referendum, saying it had darkened the skies in that country and across the euro area -- and dented an already fragile recovery.
It also downgraded its 2016 and 2017 growth estimates for the British economy.
- Key figures at 1350 GMT -
London - FTSE 100: UP 0.05 percent at 6,700.72 points
Frankfurt - DAX 30: UP 1.3 percent at 10,114.09
Paris - CAC 40: UP 0.8 percent at 4,365.20
EURO STOXX 50: UP 0.9 percent at 2,957.66
New York - DOW: UP 0.08 percent at 18,573.42
Tokyo - Nikkei 225: DOWN 0.3 percent at 16,681.89 (close)
Hong Kong - Hang Seng: UP 1.0 percent at 21,882.48 (close)
Shanghai - Composite: DOWN 0.3 percent at 3,027.90 (close)
Euro/dollar: DOWN at $1.1000 from $1.1023
Pound/dollar: UP at $1.3152 from $1.3101
Dollar/yen: UP at 106.56 yen from 106.08 yen
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