FTSE 100 LIVE: Stocks rise as traders await ECB interest rate decision
The FTSE 100 (^FTSE) and European stocks rose on Thursday as traders awaited the latest decision on interest rates from the European Central Bank (ECB).
Interest rates across the eurozone are likely to be cut by 0.25% again today, as the bank attempts to support the euro economy after the turmoil caused by US president Donald Trump's trade wars. It will be the eighth cut in a year.
It comes after eurozone inflation dropped to 1.9% last month, falling below the ECB's 2% target for the first time since last September.
Markets are pricing almost a 100% probability of a quarter-point cut, according to Ronald Temple, chief market strategist at Lazard Asset Management. He said: "With ongoing declines in inflation and consistently dovish language from ECB members, a rate cut appears to be a done deal. The ECB has previously described 1.75%–2.25% as the range that would be considered neutral monetary policy. Any signals of a change in this view would be surprising.
"I continue to expect rates to be reduced to 1.5% by year end given a more aggressive US trade posture against the European Union. Markets suggest a slightly less dovish outlook with rates ending the year just below 1.6%.'
Investors will also focus on the ECB's latest forecasts at the scheduled press conference this afternoon.
London's benchmark index (^FTSE) was hovering near the flatline in early trade.
Germany's DAX (^GDAXI) rose just 0.2% and the CAC (^FCHI) in Paris also headed 0.2% into the green.
The pan-European STOXX 600 (^STOXX) was up 0.2%.
Wall Street is set for a positive start as S&P 500 futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were all in the green.
The pound was 0.1% up against the US dollar (GBPUSD=X) at 1.3564.
Follow along for live updates throughout the day:
Stocks in Asia were mixed overnight with the Nikkei (^N225) down 0.5% on the day in Japan, while the Hang Seng (^HSI) rose 0.9% in Hong Kong. The Shanghai Composite (000001.SS) was 0.2% up by the end of the session.
Across the pond on Wall Street, the S&P 500 (^GSPC) eked out a 0.01% gain, and the tech-heavy Nasdaq (^IXIC) was 0.3% higher. The Dow Jones (^DJI) lost 0.2% by the closing bell.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets today, as well as all that's happening across the global economy.
The main highlight of the day will be the ECB's latest policy decision and president Lagarde's subsequent press conference.
Otherwise, we'll hear from the Fed's Kugler, Harker and Schmid, BoE deputy governor Breeden, and the BoE's Greene.
Data releases from the US include the weekly initial jobless claims and the April trade balance. Meanwhile in Europe, there's German factory orders for April, and the May construction PMIs for Germany and the UK.
Here's a quick snapshot of what's on the agenda for today:
7am: Trading updates: Mitie, Wizz Air, Workspace, Dr Martens, Young's & Co Brewery
7am: German factory orders for April
9am: UK new car sales report for May
9.30am: UK construction PMI report
1.15pm: European Central Bank interest rate decision
1.30pm: US trade data for April
1.30pm: US weekly jobless claims data
1.45pm: European Central Bank press conferenceStocks in Asia were mixed overnight with the Nikkei (^N225) down 0.5% on the day in Japan, while the Hang Seng (^HSI) rose 0.9% in Hong Kong. The Shanghai Composite (000001.SS) was 0.2% up by the end of the session.
Across the pond on Wall Street, the S&P 500 (^GSPC) eked out a 0.01% gain, and the tech-heavy Nasdaq (^IXIC) was 0.3% higher. The Dow Jones (^DJI) lost 0.2% by the closing bell.
Good morning, and welcome back to our markets live blog. As usual we will be taking a deep dive into what's moving markets today, as well as all that's happening across the global economy.
The main highlight of the day will be the ECB's latest policy decision and president Lagarde's subsequent press conference.
Otherwise, we'll hear from the Fed's Kugler, Harker and Schmid, BoE deputy governor Breeden, and the BoE's Greene.
Data releases from the US include the weekly initial jobless claims and the April trade balance. Meanwhile in Europe, there's German factory orders for April, and the May construction PMIs for Germany and the UK.
Here's a quick snapshot of what's on the agenda for today:
7am: Trading updates: Mitie, Wizz Air, Workspace, Dr Martens, Young's & Co Brewery
7am: German factory orders for April
9am: UK new car sales report for May
9.30am: UK construction PMI report
1.15pm: European Central Bank interest rate decision
1.30pm: US trade data for April
1.30pm: US weekly jobless claims data
1.45pm: European Central Bank press conference
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