On Thursday European stocks rose for a second day as investors awaited a policy announcement by the European Central Bank. U.S. futures gained, while Asian shares dropped.
BNP Paribas SA, France’s largest bank, added 3.1 percent after posting second-quarter profit that fell less than expected. Deutsche Post AG climbed 3.4 percent after earnings beat estimates.
The Stoxx Europe 600 Index increased 0.5 percent to 263.85 at 10:52 a.m. in London. The benchmark gauge has rallied 5.4 percent since ECB President Mario Draghi promised on July 26 to do whatever it takes to preserve the euro.
Germany retained a stable outlook for its top credit rating, Standard & Poor’s said in a statement today, after Moody’s Investors Service warned last week that the nation’s Aaa grade was at risk.
In the U.K., the Bank of England may maintain its current asset-purchase program today.
The Monetary Policy Committee led by Mervyn King will use new economic forecasts to assess whether the 50 billion-pound increase in so-called quantitative easing pledged last month can protect the economy from the euro area’s turmoil.
In the U.S., central bankers led by Federal Reserve Chairman Ben S. Bernanke concluded their two-day meeting on Wednesday saying they “will provide additional accommodation as needed” to bolster the expansion. The Federal Open Market Committee also said it will “closely monitor” economic data and financial developments.
European stocks have rallied 12 percent from this year’s low on June 4 as policy makers pledged to preserve the euro and central banks from Europe to China eased monetary policy to boost economic growth.
Japan stocks rose after the U.S. Federal Reserve’s pledge to provide additional support for the world’s largest economy if needed boosted exporters. The Nikkei 225 Stock Average rose 0.1 percent while the Topix Index climbed 0.4 percent.
This article was compiled by Valletta Fund Management Limited, a member of the BOV Group.
Valletta Fund Management, TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Freephone: 80072344.
email: [email protected] Internet address: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.