ECB lowers interest rates, businesses grow
The European Central Bank made it easier for private equity firms and ventures to invest in the region as it lowered its refinancing interest rate. The stocks from European businesses rose, as Asian shares and United States futures climbed.
Spanish investment bank Banco Espirito Santo SA rose after a poor performance yesterday, dropping 11%. United Kingdom's Taylor Wimpley Plc increased by 5.9%. The British house builder said that it successfully raised its operating profit margin by at least half.
Another European company, OC Oerlikon Corp, posted a 1.3% increase after a successful exit from its natural fiber unit.
The Stoxx Europe 600 Index was padded by 0.7 percent to 281.51 in London past noon. Futures from the S&P rose by 0.4%, which the MSCI Asia Pacific Index added 0.3%.
Due to the Fourth of July celebration nationwide, equity markets from the United States are closed.
"This supports markets for now, and probably some expectations about a dovish ECB are building ahead of today's press conference. Volume is thin out there since the U.S. is closed," commented Witold Bahrke, senior strategist at PFA Pension based in Copenhagen.
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