European shares gain
Friday, 6 July 2007
LONDON, July 5 (Reuters): European stock edged up in early Thursday trade after two days of gains, with Asian shares lending support, but markets were expected to take guidance later from two major European interest rate decisions.
Miners were among the biggest gainers with BHP Billiton and Anglo American tracking advances in base metal prices.
The pan-European FTSEurofirst 300 index was up 0.20 per cent at 1,622.9 after setting two-week closing highs in the previous session.
The European Central Bank is expected to leave interest rates on hold after tightening credit costs to a near six-year high of 4.0 per cent last month. The ECB unveils its decision at 1145 GMT followed by a news conference at 1230 GMT.
"As long as interest rates are being driven by economic growth, markets are okay," said Sharon Bell, European portfolio strategist at Goldman Sachs, referring to Europe.
She however said the scenario was different in the UK, where there were concerns about the effect of recent rate rises.
Miners were among the biggest gainers with BHP Billiton and Anglo American tracking advances in base metal prices.
The pan-European FTSEurofirst 300 index was up 0.20 per cent at 1,622.9 after setting two-week closing highs in the previous session.
The European Central Bank is expected to leave interest rates on hold after tightening credit costs to a near six-year high of 4.0 per cent last month. The ECB unveils its decision at 1145 GMT followed by a news conference at 1230 GMT.
"As long as interest rates are being driven by economic growth, markets are okay," said Sharon Bell, European portfolio strategist at Goldman Sachs, referring to Europe.
She however said the scenario was different in the UK, where there were concerns about the effect of recent rate rises.