European markets set for higher open ahead of Bank of England rate decision

Big 5

European markets looked set to open higher Thursday as investors await an interest rate decision from the Bank of England.

The FTSE 100 was seen around 24 points higher at 7,428, while early calls had the DAX opening around 63 points higher at 12,371. The CAC 40 was expected to start the session around 28 points higher at 5,546, according to IG data.

The week’s focus on central banks continues Thursday, with the Bank of England due to announce its June policy decision at noon BST. Economists polled by Reuters are expecting a unanimous vote to hold rates at 0.75%, despite two officials recently mooting the need for higher borrowing costs in the near future.

European Central Bank President Mario Draghi touted another round of stimulus on Tuesday, while Wednesday saw the U.S. Federal Reserve signal a rate cut later this year.

Shares in Asia traded higher Thursday afternoon after the Fed opened the door to cuts, with mainland Chinese indexes all rising more than 2%. Hopes for a trade deal between the U.S. and China have also risen this week as U.S. President Donald Trump and Chinese President Xi Jinping prepare to meet at next week’s G-20 summit.

Meanwhile Huawei CEO Ren Zhengfei told CNBC exclusively Wednesday that the banks in the U.S. legal case against the company knew what was happening. Huawei and his daughter, CFO Meng Wanzhou, were charged with bank and wire fraud and conspiracy to commit bank and wire fraud in relation to skirting American sanctions on Iran.

Back in the U.K., Conservative party Members of Parliament (MPs) are expected to decide the final two candidates to succeed Prime Minister Theresa May, with former Foreign Secretary Boris Johnson the clear favorite.

In corporate news, Airbus has been sealing deals with big buyers for its latest passenger jet at the Paris Air Show, following a surprise order by British Airways’ owner for rival Boeing’s grounded 737 Max jet.

Meanwhile the New York Times reported Wednesday that Deutsche Bank faces another anti-money laundering investigation, this time from U.S. federal authorities.

Source: CNBC

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