Investing.com - European stock markets were mixed in cautious trade after the open on Thursday, as investors looked ahead to policy decisions from the European Central Bank and the Bank of England later in the session.
During European morning trade, the DJ Euro Stoxx 50 shed 0.25%, France’s CAC 40 dipped 0.4%, while Germany’s DAX retreated 0.45%.
Focus turns to the European Central Bank's policy meeting later in the day, amid speculation the central bank could unveil fresh stimulus measures to fight inflation and boost growth.
Market players are hoping the meeting will shed further light on the bank's plans to start asset purchases, a move that would work in favor of the dollar's strength.
Expectations that the Federal Reserve is growing closer to raising interest rates boosted the dollar to a one-year peak against the euro earlier in the week.
Elsewhere, London’s FTSE 100 inched up 0.1% ahead of the Bank of England's policy decision for further hints on the timing of future interest rate hikes.
Two monetary policy board members voted for a rate hike in August, marking the first time since 2011 that any member voted in favor of raising rates.
Standard Life (LONDON:SL) shares surged 9.3% on the insurer’s plan to return £1.75 billion to investors.
Across the Atlantic, U.S. equity markets pointed to a steady open. The Dow 30 pointed to a rise of 0.03%, S&P 500 inched up 0.03%, while the Nasdaq 100 indicated a rise of 0.15%.
Investors looked ahead to Friday’s U.S. employment report for August for further indications on the strength of the recovery in the labor market, a key factor in deciding the future path of monetary policy.
While the U.S. economy continues to gain steam, Federal Reserve Chair Janet Yellen has expressed concern over slackness persistent in the labor market.
On Thursday, the U.S. is to release trade-balance data, the ADP report on private-sector job creation and the weekly report on initial jobless claims. Also on Thursday, the ISM is to publish a report on U.S. service sector activity.
A recent batch of upbeat data underlined optimism over the strength of the economy and fuelled expectations that the Fed will begin to raise rates sooner than previously thought.