European markets set for mixed open ahead of Bank of England decision – NBC New York

LONDON — European markets are expected to open mixed on Thursday as investors digest a raft of central bank measures.

According to IG data, Germany’s DAX and France’s CAC 40 opened slightly below flatline, while Britain’s FTSE 100 rose slightly.

The Bank of England is set to announce its final monetary policy decision at midday in London. Markets are pricing in a slight favourable response to a 25 basis point rate cut by the Bank of England, setting the path of monetary easing. However, analysts say there is more uncertainty surrounding its decision than usual, despite inflation remaining at 2%, with some voting members still concerned about service sector inflation and wage growth.

The BOE meeting follows the U.S. Federal Reserve, which ended with interest rates widely expected to remain on hold. At his press conference, Fed Chairman Jerome Powell said a September rate cut — which traders consider almost certain — was “on the table” as long as inflation data continues to support it. Powell, however, appeared to rule out the possibility of a cut as large as 50 basis points.

Investors are still digesting Wednesday’s surprise move by the Bank of Japan, which raised its benchmark interest rate to around 0.25%, the highest level since 2008, and hinted at more tightening to come. The decision sent the yen to a four-and-a-half-month high against the U.S. dollar, while Japanese stocks tumbled.

With central banks dominating the macroeconomic picture, earnings season is in full swing.

The tech index Nasdaq Composite rose 2.64% in U.S. trading on Wednesday as Advanced Micro Devices reported a strong quarter, while Facebook owner Meta rose in longer trading on better-than-expected results.

European technology companies also saw big moves on Wednesday, posting strong gains in Europe after chipmaker ASML responded to a Reuters report suggesting it may be exempt from U.S.-led Chinese export restrictions.

Companies reporting on Thursday include oil company Shell and British bank Barclays.