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AFP
European stock markets were mixed on Thursday, as London shares rose on hints from the Bank of England that there could be another rate cut this year.
London’s benchmark FTSE 100 stocks index was up 0.2 percent in afternoon trading, as traders also reacted to better-than-expected British retail sales data.
In the eurozone, Frankfurt’s DAX 30 index slipped 0.4 percent and the Paris CAC dropped 0.6 percent.
On the corporate front, shares in French energy giant EDF fell nearly 0.2 percent to 11 euros after Britain gave the go-ahead for the Hinkley Point nuclear power station.
EDF’s board had already approved its participation in the China-backed project in southwest England, before Britain’s new Prime Minister Theresa May ordered a review.
The Bank of England published on Thursday the outcome of its latest monthly policy meeting, keeping its key interest rate at a record-low 0.25 percent, with no signs the Brexit vote was hurting the economy. But the central bank also signaled that it could decide to cut the rate further to just above zero percent before the end of this year.
“What’s interesting is that despite the better-than-expected data, most… (BoE policymakers) still think they will have to cut rates again this year,” said ETX Capital markets analyst Neil Wilson.
Ahead of the BoE decision, traders had digested the latest data regarding retail sales in Britain, which officially fell 0.2 percent in August from July, again showing no negative Brexit effect.
“Regarding the EU referendum in late June, our data on retail sales since the vote show little evidence of a departure from recent trends,” the Office for National Statistics said in a statement.
On Wall Street, stocks rose early Thursday helped by Apple’s jump on reports that its newest iPhones have sold out in some places even before they arrive at stores. Apple climbed 2.6 percent as reports continue to point to strong demand for the new iPhone 7, which are due in stores on Friday.
About 25 minutes into trade, the Dow Jones Industrial Average was up 0.1 percent, the same for the broad-based S&P 500, while the tech-rich Nasdaq Composite Index advanced 0.3 percent.
In Asia, Tokyo’s main index tumbled in a choppy day for the continent’s stock markets ahead of key policy meetings in the United States and Japan next week.