European stocks rise before ECB rate call

European stock markets climbed but the euro fell against the dollar on Thursday as traders awaited monetary policy updates from the ECB and Bank of England. Markets were also analysing a batch of earnings from some of Europe's biggest companies, while digesting the outcome of the Federal Reserve's latest meeting. "With both the UK and Europe having a few bright spots of economic data to point to, markets are fairly confident in expecting no policy change from either institution" on Thursday, said Capital Spreads trader Jonathan Sudaria. In late morning deals, London's FTSE 100 index of top blue-chip companies was up 0.40 percent at 6,6646.58 points. Frankfurt's DAX 30 jumped 1.20 percent to 8,374.71 points and in Paris the CAC 40 gained 0.48 percent to 4,011.93. Indices won some support from news that eurozone industry bounced back into growth mode in July, with the sector logging a two-year high and German manufacturers notably ending five months in the doldrums. In foreign exchange activity, the euro fell to $1.3240 from $1.3301 late in New York on Wednesday. Sterling dipped to $1.5199 from $1.5205 but was higher versus the European single currency. On the London Bullion Market, the price of gold grew to $1,323.15 an ounce from $1,314.50 on Wednesday. Among individual share price movement, Societe Generale soared 8.54 percent to 32.81 euros after the French banking giant said that it more than doubled its net profits in the second quarter. But Sanofi slumped 6.25 percent to 75.15 euros as the French pharmaceutical group reported a plunge in second-quarter profit and lowered its year-end forecast. Energy giant GDF Suez reported a profits fall but held to its targets while saying it would pursue a rigorous review of its European assets, and the shares rose by 4.88 percent to 16.54 euros. In London, Lloyds Banking Group surged 7.65 percent to 73.70 pence after Britain's state-rescued lender announced a return to first-half net profits, boosting government hopes of returning it to the private sector. On the downside, Royal Dutch Shell 'A' shares shed 5.18 percent to 2,121.5 pence as the Anglo-Dutch energy group reported plunging net profits. Meanwhile in Frankfurt, BMW lost 1.98 percent to 72.18 euros despite the German top-of-the-range carmaker posting a higher-than-expected increase in second-quarter net profit. The company added that its revenue gain came in slightly below forecasts. Asian markets rose Thursday as investors welcomed the US Federal Reserve's decision to keep its stimulus scheme in place, with its view the economy was growing modestly soothing fears over the programme's future. Figures showing the world's number one economy grew more than forecast in the second quarter also provided support, while a better than expected official reading on Chinese manufacturing helped Hong Kong and Shanghai, traders said "The potential problem areas of the US Federal Reserve and Chinese economic data have been negotiated with a degree of success, allowing (stock) markets to push higher this morning," said IG trader Yusuf Heusen. While the Fed announcement was positive, it provided nothing new and Wall Street ended mixed on Wednesday.