European stocks look set for a higher open on Thursday ahead of rate decisions from the Bank of England (BoE) and the European Central Bank (ECB). According to IG, the FTSE is called up 111 points at 6,786, the German Dax is seen higher by 20 points at 9,562 and the French CAC is seen up 7 points at 4,398. The ECBs decision is due at 12:45 p.m. London time with the central banks president, Mario Draghi, speaking at a press conference at 1:30 p.m. London time. Economists remain split on whether the central bank will act or not with consumer price data in the euro zone continuing to show little pick up. Meanwhile, The International Monetary Fund (IMF) has warned of the risks of low inflation and called for the European Central Bank (ECB) to help strengthen the regions economy ahead its policy decision on Thursday. The IMF blog, written by economists led by Reza Moghadam, director of the funds European Department, says that Europe can have too much of a good thing, including low inflation. Before the announcement in Frankfurt, the BoE is due to reveal its own rate decision at midday London time. Investors will also keep a close eye on events in Ukraine. EU heads of states are set to meet at a summit on Thursday to discuss developments in Ukraine. Tensions between Ukraine and Russia have heightened in recent weeks and on Sunday Russia carried out a bloodless invasion of Ukrainian peninsula Crimea. Ukrainian politician and potential presidential candidate Vitali Klitschko told CNBC that Russian President Vladimir Putin was frightened of how events were unfolding in Ukraine. He [Putin] is scared of what is happening because the [Ukrainian] people dont want to…live with this corruption, live without human rights and that is why the people want the changes, he said. On the data front, a Halifax house price index for the U.K. is released at 8:00 London time, with U.K. monthly car registrations, euro zone retail figures and German manufacturing order numbers also set to be released.
Posted on: Thu, 06 Mar 2014 06:11:29 +0000
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