London, (MILLAT ONLINE):European stock markets traded narrowly mixed Thursday, as the Bank of England looks set to announce its first interest-rate rise in a decade.
All eyes will also be on the United States, as President Donald Trump looks set to replace Federal Reserve chief Janet Yellen with a governor of the central bank, Jerome Powell.
Investors were looking also to the imminent US House Republicans’ tax reform announcement.
In late morning European trades, London’s benchmark FTSE 100 index was up 0.2 percent compared with the close on Wednesday.
The index was helped by a weaker pound boosting share prices of multi-nationals.
In the eurozone, Frankfurt’s DAX 30 dropped 0.2 percent and the Paris CAC 40 slipped by 0.1 percent in value.
At 1200 GMT, the Bank of England (BoE) is widely expected to announce an increase in its key interest rate to 0.50 percent from a record-low 0.25 percent in a bid to tame high British inflation.
“How the pound trades — and the FTSE for that matter given the inverse correlation that the two share — in the aftermath of the decision will likely depend on the minutes, economic projections and press conference that accompanies the decision,” noted Oanda analyst, Craig Erlam.
“Any indication that more rate hikes are planned for next year could trigger a sharp rally in the pound… while anything else may weigh,” he said.
Rising rates in US –
As expected, the Fed on Wednesday kept US interest rates unchanged as it reported that the world’s biggest economy was growing at a “solid pace”.
That statement solidified the view the US central bank is likely to raise interest rates in December, in turn boosting the dollar.
Earlier Thursday, Tokyo’s stock market was the Asian standout, building on a rally and buoyed by a strong US growth forecast and domestic corporate results as well as a weak yen, traders said.
Shares on the Nikkei 225 index added 0.5 percent to hit a fresh 21-year high, brushing aside concerns about overheating following their recent surge.
On Wall Street, the world’s biggest company Apple was due to release earnings Thursday.
New York markets meanwhile remained hopeful that Trump’s ambitious tax plans are moving closer to becoming reality, but a delay in the roll-out signalled potential trouble ahead.