LONDON: European stock markets steadied Thursday after a recent run higher, with all eyes on the outcome of the ECB’s latest policy meeting.
Around 1030 GMT, London’s benchmark FTSE 100 index was down 0.1 percent compared with Wednesday’s close.
In the eurozone, Frankfurt’s DAX 30 gained 0.3 percent and the Paris CAC 40 won 0.1 percent. The CAC earlier hit a one-year high at 4,716.60 points.
“All heads turn to Frankfurt today, as the ECB emerges from its latest monetary policy meeting to guide market sentiment,” said Joshua Mahony, market analyst at IG trading group.
“An extension to QE (stimulus) seems somewhat of a foregone conclusion, with the current programme due to expire in March and no current plan for winding down the scheme in place.”
The European Central Bank was Thursday widely expected to prolong massive monetary stimulus, as the election of Donald Trump and fears for heavyweight member Italy rattle the eurozone.
Most analysts predict president Mario Draghi will extend an 80-billion-euro ($86-billion) per month bond-buying scheme beyond the current March deadline at his press conference.
Economic activity in the eurozone could suffer if US President-elect Donald Trump implements protectionist promises made on the campaign trail.
And the 28-country European Union has worries of its own, with Britain headed for the exit door, Italy destabilised by the resignation of Prime Minister Matteo Renzi, and elections in the key eurozone economies of France and Germany next year.
Global stocks have rallied this week, propelling the Dow on Wall Street to successive records — and put it on course to hit 20,000 for the first time — while the S&P 500 also clocked up an all-time high Wednesday.
Tokyo ended 1.5-percent higher on Thursday, while Seoul surged two percent and Sydney, Taipei and Manila piled on more than one percent.
Shanghai though dipped 0.2 percent despite Chinese trade data showing a forecast-beating jump in imports and exports that indicate the world’s number two economy continues to stabilise.
Japanese traders meanwhile brushed off data showing the world’s number three economy grew slower than initially thought, with the government offering a glimmer of hope by revising up its forecasts for the first and second quarters of 2017.
On currency markets the dollar dipped against most of its peers, although expectations the Federal Reserve will ramp up interest rates next week are keeping it buoyant.
The greenback retreated more than one percent against the New Zealand dollar after an upbeat economic reading by the country’s central bank chief, who also said he did not foresee any fresh interest rate cuts.
Oil prices rebounded slightly after losses triggered by concerns over OPEC’s ability to implement an output cut agreed last week.
Both main contracts sank Wednesday as a drop in US stockpiles was overshadowed by worries about implementation of the deal with Russia, which sent prices rocketing about 15 percent.
“Market sentiment seems to have reversed as participants question how meaningful the deal is and whether producers will actually stick to proposed cuts,” said Alex Furber, a trader with CMC Markets.
London – FTSE 100: DOWN 0.1 percent at 6,898.83
Frankfurt – DAX 30: UP 0.3 percent at 11,017.83
Paris – CAC 40: UP 0.1 percent at 4,697.94
EURO STOXX 50: UP 1.0 percent at 3,133.67
Tokyo – Nikkei 225: UP 1.5 percent at 18,765.47 (close)
Hong Kong – Hang Seng: UP 0.3 percent at 22,861.84 (close)
Shanghai – Composite: DOWN 0.2 percent at 3,215.37 (close)
New York – Dow: UP 1.6 percent at 19,549.62 (close)
Euro/dollar: UP at $1.0796 from $1.0755 Wednesday
Dollar/yen: DOWN at 113.45 yen from 113.74 yen
Pound/dollar: UP at $1.2700 from $1.2623
Oil – West Texas Intermediate: UP 29 cents at $50.06 per barrel
Oil – Brent North Sea: UP 49 cents at $53.49 per barrel
