European markets higher ahead of ECB rate decision; Cobham shares jump 35% - CNBC

European stocks were higher Thursday morning, after soft economic data bolstered expectations of a rate cut from the European Central Bank (ECB).

The pan-European Stoxx 600 was up around 0.4% during early morning deals, with most sectors and major bourses in positive territory.

European Markets: FTSE, GDAXI, FCHI, IBEX

Market focus is largely attuned to global central banks, amid speculation outgoing ECB President Mario Draghi could pre-empt a move by the U.S. Federal Reserve and push for lower borrowing costs.

The ECB is scheduled to announce its latest interest rate decision at 12:45 p.m. London time, with Draghi's press conference set to follow at around 1:30 p.m.

Some market participants expect policymakers at the central bank to cut rates by 0.1% on Thursday, while traditional ECB watchers tend to believe it is more likely the bank will promise to ease monetary policy over the coming months instead.

A flurry of purchasing manager index (PMI) readings in the U.S. and Europe came in weaker-than-anticipated on Wednesday, fueling hopes the ECB and Federal Reserve would ease monetary policy settings soon.

"The risk of something big happening today is still under-priced," Frederik Ducrozet, strategist at Pictet Wealth Management, said via Twitter on Thursday.

Ducrozet said the chances of a rate cut had increased "substantially" after a series of weaker-than expected economic data. However, the "bigger question" would concern Draghi's comments on quantitative easing, he added.

The euro hovered close to two-year lows during early morning deals, trading down 0.1% at $1.1132.

Cobham shares jump 35%

Looking at individual stocks, Britain's Cobham surged to the top of the European benchmark Thursday morning, after U.S. private equity firm Advent International agreed to buy the company for $5 billion. Shares of the London-listed stock jumped more than 35% on the news.

Meanwhile, Sage tumbled toward the bottom of the index, falling almost 10% after software related services revenue dropped 15.5% for the first nine months of the year.

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https://www.cnbc.com/2019/07/25/europe-stock-markets-ecb-rate-decision-in-focus.html

2019-07-25 06:11:55Z
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