European stock markets inched cautiously higher in early trade on Thursday, led by banks and oil firms, as investors nervously awaited the latest policy decision from the European Central Bank, hoping for action to curb the region’s debt crisis.
The Stoxx Europe 600 index SXXP rose 0.2% to 263.24, adding to a 0.5% gain from Wednesday. The pan-European index has closed in positive territory in four out of the five past trading days as hopes the ECB would move toward nontraditional policy measures, such as a resumption of sovereign bond buying, sparked a risk rally.
Last week, ECB President Mario Draghi pledged to do “whatever it takes” within the bank’s mandate to preserve the euro. All eyes will be on the central bank boss when he holds his monthly news conference later in the day.
The U.S. Federal Reserve failed to boost market confidence on Wednesday after a two-day policy meeting, as it refrained from activating stimulus measures to bolster the fragile economic recovery. The central bank further downgraded its view on the economy, but said it stands ready to act if needed Read: Fed frets, but doesn’t offer more help for economy
In Europe, banks helped lift stock markets. France’s BNP Paribas SA BNP gained 2% after announcing it completed 90% of its restructuring plan, while second-quarter profit dipped 13%. BNP Paribas 2Q hurt by weak capital markets
The CAC 40 index PX1 rose 0.1% to 3,325.26, further lifted by oil group Total SA FPTOT, up 0.6%
In the U.K. oil firms were also on the rise, tracking oil prices higher. BP PLC BP. BP advanced 1.1%, while Royal Dutch Shell PLC RDSBRDS.B rose 0.7%. The gains helped the FTSE 100 index UKX move 0.3% higher to 5,731.81.
Among notable movers in Germany, sportswear maker Adidas AG ADS shed 2.1%, even as second-quarter sales rose 15%. Adidas earnings boosted by Olympics, euro 2012
Deutsche Lufthansa AG LHA pointed in the other direction, up 3.2%, as earnings for the second quarter beat market expectations. Lufthansa still expects earnings contraction
The DAX 30 index DAX slipped 0.1% to 6,750.36.
Marketwatch
