European shares mixed ahead of BoE, ECB and Turkey rate decisions
Equity indices across Europe traded mixed on Thursday morning ahead of several central bank meetings.
The pan-European Stoxx 600 was flat with the various sectors taking different directions. Basic resources were the top gainers in early deals on hopes that China and the U.S. might reach a compromise over trade. On Wednesday, the White House said that it had invited Chinese officials to restart trade talks.
Natixis shares led the gains, up by more than 4 percent, after the French bank said it plans to sell the business to its parent bank for $3.1 billion, Reuters reported. At the other end, Rubis shares dropped to the bottom of the index, down by more than 13 percent. This was after reporting its latest first-half results.
In Europe, the focus seems to be on monetary policy with three meetings scheduled. The Bank of England and the European Central Bank are due to announce their latest decisions at lunchtime in Europe. Analysts are not expecting any changes in policy but will be monitoring the statements carefully.
In Turkey, the central bank is expected to increase interest rates to compensate for the depreciation of the Turkish lira.
Market players are also keeping an eye on the U.K. government, with a cabinet meeting scheduled to take place Thursday morning. Prime Minister Theresa May is set to discuss the issue of a no-deal with the European Union over Brexit.
In corporate news, Deutsche Bank is reportedly considering to loosen the bond between retail and investment banking, Reuters reported. This would mean that the bank could create a holding company structure in order to be able to strike merger deals more easily.