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European Bourses Steady After Bank of England Announcement
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European Bourses Steady After Bank of England Announcement
May 9, 2024 5:10 AM

07:45 AM EDT, 05/09/2024 (MT Newswires) -- European bourses tracked evenly midday Thursday after the Bank of England announced it would leave its monetary policy regime largely unchanged.

London's FTSE 100 Index again tested all-time record highs.

Oil stocks gained, while retail and bank shares lagged.

Investors also eyed Wall Street futures signaling red and lower closes overnight on Asian exchanges, although Hong Kong and Shanghai rose after a strong April international trade report from Beijing.

In economic news, the Bank of England disclosed it would keep its benchmark interest rate at 5.25% for the sixth policy session in a row. The central bank estimated the UK gross domestic product (GDP) will expand by 0.4% in Q1 and by 0.2% in Q2.

The pan-continental Stoxx Europe 600 Index was marginally lower mid-session.

The Stoxx Europe 600 Technology Index was up 0.1%, and the Stoxx 600 Banks Index lost 0.6%.

The Stoxx Europe 600 Oil and Gas Index was 0.7% higher, and the Stoxx 600 Europe Food and Beverage Index was up 0.1%.

The REITE, a European REIT index, declined 0.3%, and the Stoxx Europe 600 Retail Index was 0.7% lower.

On the national market indexes, Germany's DAX was up 0.4%, and the FTSE 100 in London was 0.4% higher. The CAC 40 in Paris was up 0.1%, and Spain's IBEX 35 lost 1.2%.

Yields on benchmark 10-year German bonds were higher, near 2.5%.

Front-month North Sea Brent crude oil futures were up 0.8% to $84.23 per barrel.

The Euro Stoxx 50 volatility index was down 0.1% at 13.71, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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