Thursday, September 06 08:49:18
European equities edged higher in early trade today, with investors reluctant to sell the market in case a European Central Bank meeting later in the day yields a sufficiently strong stimulus signal to revive risk appetite. The onus is on ECB President Mario Draghi to back up his promise "to do whatever it takes" to preserve the euro, with investors focused on any details of the central bank's new bond-buying programme intended to help bring down the borrowing costs of Spain and Italy.
"The hope is out there," said Gerhard Schwarz, head of equity strategy at Baader Bank. "It seems that ... there will be some details provided but so far I think that the ECB will leave its door wide open by refraining to mention specific caps at which it will act. Certainly it is helpful if there is an unlimited amount possible and also if the ECB will refrain from holding a preferred creditor status. But still we need a formal aid request from countries like Spain or Italy before the ECB will get busy."
The FTSEurofirst 300 was up 0.3 percent at 1,082.53 points by 0703 GMT, having recovered from a one-month intra-day low of 1,074.05 points set on Wednesday. ( C) Reuters