European Stocks: 10-Month High Before Monetary Policy Decisions
European stocks rose in morning trade Thursday to maintain their gains for the third consecutive session, near the 10-month high recorded in the previous session, and the gains remain limited until the moment, as investors awaited monetary policy decisions in the euro zone.
The Dow Jones Stoxx Europe 600 index added nearly 0.2% as of 11:50 GMT, and the index ended yesterday’s session up by 0.3%, the second consecutive daily gain, and reached 396.61 points, the highest since last February.
These gains were achieved thanks to strong investor sentiment, with positive news about the Coronavirus vaccines.
The Stoxx Europe index rose in morning trade Thursday to extend its gains for the third consecutive session, near its highest level in ten months, with most of the major European bourses and sectors in positive territory.
The food and beverage sector topped the list of the gaining sectors in Europe, with an increase of nearly one percent, in light of expectations of increased demand before the fiscal New Year holidays.
European interest rate decision and monetary policy statement will be released by 12:45 GMT, and ECB President Christine Lagarde speaks by 13:30 GMT.
It is widely expected that the central bank will expand monetary stimulus measures, with the aim of supporting the economy of the united region in facing the risks of slowing the economic recovery, and combating stagflation, which has become one of the biggest crises facing European monetary policy makers.
Futures contracts for the Standard & Poor’s 500 Index fell by more than 0.2%, and the index ended yesterday’s session on Wall Street down by 0.8%, due to corrections and profit-taking, after the index hit a new record high at 3,712.39 points earlier in the trade.
In Europe, the Euro Stock 50 index rose by about 0.3%, in France the CAC 40 index increased by 0.3%, and in Germany the DAX index rose by 0.1%.
In London, the FTSE 100 index added 0.8%, topping the list of profitable markets in Europe, thanks to the widespread decline in the exchange rate of the pound sterling against a basket of global currencies.