(MENAFN- AFP) Europe's main stock markets rose Wednesday, led higher by eurozone indices on the eve of an interest rate decision from the European Central Bank.
"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 midday deals, London added 0.3 percent as dealers also digested news that Britain's unemployment rate sat at a 11-year low of 4.9 percent.
In the eurozone, Frankfurt shares won 1.4 percent and Paris gained 1.2 percent in value.
The ECB was expected to hold fire Thursday on monetary policy -- but would likely prepare the ground for more stimulus in September as the economic fallout from Brexit becomes clearer, analysts predict.
The central bank's latest 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 -
Elsewhere on Wednesday, Japanese stocks finally fell after six straight days of gains, while most other Asian markets moved cautiously following a weak lead from New York and a cut in the IMF'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.
While the Dow on Wall Street closed at another record, global sentiment was tepid after the International Monetary Fund lopped 0.1 percentage point off its global economic growth forecast for both this year and next.
The IMF 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 1100 GMT -
London - FTSE 100: UP 0.3 percent at 6,715.60 points
Frankfurt - DAX 30: UP 1.4 percent at 10,123
Paris - CAC 40: UP 1.2 percent at 4,380.90
EURO STOXX 50: UP 1.2 percent at 2,964.60
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)
New York - DOW: UP 0.1 percent at 18,559.01 (close)
Euro/dollar: DOWN at $1.1012 from $1.1023
Pound/dollar: UP at $1.3170 from $1.3101
Dollar/yen: UP at 106.53 yen from 106.08 yen
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