LONDON (AP) — European stocks were steady Thursday after the European Central Bank kept interest rates on hold and investors awaited to hear whether the bank is ready to inject another dose of stimulus into the ailing eurozone economy.
KEEPING SCORE: In Europe, the FTSE 100 index of leading British shares was down 0.1 percent at 6,339 while the CAC-40 in France rose 0.1 percent to 4,698. Germany’s DAX was 0.2 percent higher at 10,262. U.S. stocks were poised for solid gains at the open, with Dow futures and the broader S&P 500 futures up 0.4 percent.
ECB IN FOCUS: The decision by the European Central Bank to keep its main interest rate at 0.05 percent was widely expected. More interest is on what Draghi will say at the press conference. Most traders think he will underline the bank’s readiness to step up its 1.1 trillion-euro ($1.2 trillion) stimulus program.
ANALYST TAKE: “We can hope for some indication that action is on its way, although the ECB president will be understandably keen to keep the details under wraps for now,” said Chris Beauchamp, senior market analyst at IG.
EURO IN SPOTLIGHT: Europe’s single currency, which has advanced recently against the dollar, is likely to be one of the main avenues through which traders may trade Draghi’s comments. The prospect of an imminent increase in the ECB’s bond-buying program could prompt the euro to fall as traders price in the prospect of more euros in circulation. Ahead of his comments, the euro was down 0.2 percent at $1.1320.
CHINA CALM: Chinese stocks closed higher after zigzagging between positive and negative. The Shanghai Composite Index finished up 1.5 percent at 3,368.74 following a 3 percent slide Wednesday.
ASIA’S DAY: Asian stock markets outside China closed mostly lower. Japan’s Nikkei 225 fell 0.6 percent to 18,435.87 and South Korea’s Kospi dropped 1 percent to 2,023.00. Hong Kong’s Hang Seng fell 0.6 percent to 22,845.37. But Australia’s S&P/ASX 200 rose 0.3 percent to 5,263.80.
ENERGY: Benchmark U.S. crude added 64 cents to $45.84 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 70 cents to $48.55 a barrel in London.
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