European stocks held gains on Thursday, after the release of upbeat German factory orders data and as investors eyed the release of the European Central Bank's monthly policy statement later in the trading session.
European equities remain higher after strong German data
During European afternoon trade, the EURO STOXX 50 climbed 0.65%, France’s CAC 40 gained 0.67%, while Germany’s DAX 30 rose 0.29%.
Official data showed that factory orders increased by 1.2% in January, beating expectations for a gain of 0.7%. Factory orders declined by 0.2% in December, whose figure was revised from a previously reported decline of 0.5%.
The ECB was expected to hold off cutting rates later Thursday but was expected to take other steps to tighten policy, amid ongoing concerns over the subdued inflation outlook for the euro area.
Figures released last Friday showed the annual rate of inflation in the euro area was unchanged at 0.8% in February, well below the ECB's target of just under 2.0%.
Data on Wednesday showing that euro zone private sector activity grew more rapidly than initially estimated in February, expanding at the fastest pace since June 2011 eased pressure on the bank to cut rates.
Financial stocks were broadly higher, as French lenders BNP Paribas and Societe Generale jumped 0.91% and 0.62%, although Germany's Deutsche Bank rallied 1.37%.
Among peripheral lenders, Intesa Sanpaolo and Unicredit jumped 1.01% and 1.40% respectively, while Spanish banks BBVA and Banco Santander gained 0.82% and 0.85%.
Elsewhere, Vivendi SA advanced 0.90% after the media-to-telecommunications group said it received two bids for the French phone unit SFR it was planning to spin off. Bouygues, up 8.72%, said its bid values SFR at almost €19 billion.
Bouygues is reportedly offering €10.5 billion euros in cash and will contribute assets to the new entity.
In London, commodity-heavy FTSE 100 added 0.32%, still supported by gains in the mining sector, while the Bank of England kept its benchmark interest rate unchanged in March and announced no change to its asset purchase facility program.
Shares in Rio Tinto climbed 0.64% and Glencore Xstrata jumped 1.59%, while rivals Polymetal and Vedanta Resources rallied 1.23% and 2.65% respectively.
Financial stocks were also broadly higher, as Royal Bank of Scotland added 0.07% and Barclays rose 0.33%, while HSBC Holdings climbed 0.44% and the Royal Bank of Scotland jumped 1.21%.
Meanwhile, IMI continued to lead losses on the index, plummeting 5.78%, after the British engineer said adjusted pretax profit for the full year rose 8%, helped by a surge in orders in its severe service division.
In the U.S., equity markets pointed to a higher open. The Dow Jones Industrial Average futures pointed to a 0.19% rise, S&P 500 futures signaled a 0.18% increase, while the Nasdaq 100 futures indicated a 0.12% gain.
Later in the day, the U.S. was to publish the weekly report on initial jobless claims and data on factory orders.
Market participants will scrutinize Draghi’s comments for clues in regards to the central bank's next course of action in dealing with an ongoing sovereign debt crisis.
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