Europe stocks steady ahead of ECB

Investors have paused for breath, awaiting the ECB’s first policy meeting since Britain’s referendum.

Stocks in Europe held steady Thursday as investors paused following a recent rally and waited for the European Central Bank’s first policy meeting since the UK voted to leave the European Union last month.

The Stoxx Europe 600 was flat in early trade, with airline stocks weighing on the index after easyJet PLC reported a fall in sales and Deutsche Lufthansa AG issued a profit warning. Markets in Asia mostly gained after Wall Street closed at record highs Wednesday.

Global stocks have been on the rise in recent weeks, fueled by a series of data releases underlining the strength of the US economy, corporate earnings and expectations of further central bank action following the Brexit vote. Economists don’t expect the European Central Bank to boost its stimulus measures on Thursday, but many believe officials will signal such a move is on the cards at the bank’s September meeting.

The euro was 0.1 per cent higher against the dollar Thursday at $1.1027, while the buck fell 0.2 per cent against the yen to Yen107.0610. The ICE US Dollar Index, which measures the greenback against a basket of currencies, hit a four-month high Wednesday as investors signaled a stronger expectation that the US Federal Reserve would raise interest rates this year.

Asian bourses mostly ended higher Thursday. Hong Kong’s Hang Seng Index was on track to enter bull market territory with a 1 per cent rise, taking gains to over 20 per cent since its mid-February low. Japan’s Nikkei Stock Average ended 0.8 per cent higher and Australia’s S&P ASX 200 was up 0.4 per cent.

- Dow Jones newswires