By RTT News, October 10, 2013, 06:29:00 AM EDT
(RTTNews.com) - The French market is trading higher on Thursday, amid hopes of a short-term increase in the debt ceiling, ahead of the monetary policy announcement from the Bank of England.
House Republican leaders are said to be considering a short-term increase in the U.S. debt limit to help avert a government debt default. President Barack Obama indicated that he is ready to accept a short term debt limit deal without policy conditions.
The minutes of the Federal Reserve's September 17-18 meeting revealed that concerns about a government shutdown kept the Federal Reserve from scaling back its monetary stimulus last month. Still, the minutes show most Fed members expect the economy will be strong enough to begin winding down QE3 this year and ending it completely by the middle of 2014.
Closer home, French industrial production increased for the first time in four months in August, data from statistical office Insee showed. Output increased 0.2 percent month-on-month in August following a 0.6 percent decline in July. Economists had forecast a 0.6 percent increase.
At 7.00 am ET, the Bank of England is set to announce the results of the two-day rate-setting meeting. The bank is expected to maintain its key bank rate at 0.50 percent and asset purchase programme unchanged at 375 billion pounds.
The Euro Stoxx 50 index of eurozone bluechip stocks is gaining 1.32 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is rising 0.92 percent.
The CAC 40 index is currently gaining 1.5 percent.
Renault is gaining 4.6 percent and Peugeot is rising 1.8 percent.
Axa is up 4 percent. Macquarie upgraded the stock to ''Outperform'' from ''Neutral.''
Societe Generale, BNP Paribas and Credit Agricole are gaining between 3.8 percent and 3.2 percent.
UBS cut Lafarge to ''Neutral'' from ''Buy.'' However, the stock is gaining 1.6 percent.
Elsewhere in Europe, markets are trading higher. However, Asian markets had a mixed outing, amid worries about the U.S.
In the U.S., futures point to a higher open on Wall Street. In the previous session, stocks ended mixed, amid continued concerns about the ongoing government shutdown and the budget ceiling. The Dow and the S&P 500 posted modest gains, while the Nasdaq slid half a percent to its lowest level in a month.
In the commodity space, crude for November delivery is adding $0.40 to $102.01 per barrel, while December gold is losing $9.0 to $1298.2 a troy ounce.
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