Investing.com - European stocks opened higher on Thursday, as investors were eyeing the European Central Bank's upcoming monetary policy decision, amid growing hopes the bank will soon announced the unwinding of its asset-purchase program.
During European morning trade, the EURO STOXX 50 rose 0.27%, France’s CAC 40 added 0.15%, while Germany’s DAX 30 climbed 0.56% by 03:40 a.m. ET (07:40 GMT).
Later Thursday, the ECB was expected to leave interest rates unchanged. Market participants were especially awaiting comments by ECB President Mario Draghi for any indications on the future path of the central bank's stimulus program.
Meanwhile, sentiment also improved after U.S. President Donald Trump concluded a surprise deal with Democrats in Congress to extend the debt ceiling.
If passed by the Republican-led Congress, the agreement would provide government funding until December 15, potentially avoiding an unprecedented default on U.S. government debt.
Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) dropped 0.70% and 0.67%, while Germany’s Commerzbank (DE:CBKG) and Deutsche Bank (DE:DBKGn) lost 0.58% and 1.15%.
Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) slid 0.14% and 1.06% respectively, while Spanish banks BBVA (MC:BBVA) edged down 0.19%.
On the upside, E.ON SE NA (DE:EONGn) shares rallied 1.62% after the German energy company on Wednesdaybegan construction on its Texas Waves energy storage projects.
Daimler AG NA O.N. (DE:DAIGn) added to gains, with shares up 1.43% following reports it and SK Holdings of South Korea are leading a $92 million investment round in Turo, the peer-to-peer car rental company.
In London, FTSE 100 inched up 0.04%, helped by Imperial Brands (LON:IMB), whose shares surged 2.94% after the tobacco company said on Thursday that it sold 13.3 million shares of Compania de Distribucion Integral Logista Holdings S.A. for £230.8 million.
Micro Focus International PLC (LON:MCRO) continued its upward swing this week, as shares climbed 2.56% Thursday morning, still supported by news the $8.8 billion spin-off and merger of Hewlett Packard Enterprise's software business was completed.
Meanwhile, Capita PLC (LON:CPI) was one of the worst performers on the index, as shares dove 4.74% after the business services company lowered its underlying operating profit for 2016 to £335 million from a previous estimate of £481 million
Financial stocks were also broadly lower, as Barclays (LON:BARC) slid 0.27% and HSBC Holdings (LON:HSBA) dropped 0.40%, while Lloyds Banking (LON:LLOY) and the Royal Bank of Scotland (LON:RBS) tumbled 0.97% and 1.19% respectively.
Mining stocks added to losses on the commodity-heavy index. Shares in Fresnillo (LON:FRES) retreated 0.80% and Glencore (LON:GLEN) declined 1.37%, while rival company BHP Billiton (LON:BLT) plummeted 2.34%.
In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.20% fall, S&P 500 futures signaled a 0.21% loss, while the Nasdaq 100 futures indicated a 0.18% slip.