European markets mostly strengthen before ECB

LONDON: Europe's major stock markets mostly rose Thursday but investors remain cautious before the latest eurozone interest rate decision.

The European Central Bank (ECB) is due at 1245 GMT to announce the outcome of its latest monetary policy gathering.

Europe's markets had stumbled out of the gates in opening deals. But as the morning progressed, Frankfurt and Paris rebounded into gains while London's FTSE 100 index languished in the red.

"The FTSE is edging lower ... but European indexes all look in good shape ahead of the ECB's meeting later today," said Fiona Cincotta, senior markets analyst at trading firm City Index.

"There is little expected on the rate front: the eurozone's central bank is expected to leave rates unchanged not only this month but most likely until September.

"However, what will attract more attention will be the bank's comments about the growing risks to the region's economy."

The ECB will avoid sudden moves after removing a pillar of support to the eurozone economy, analysts expect, though it could already be eyeing ways to respond to slower growth.

Policymakers are caught at an intermediate stage of withdrawing crisis-era stimulus, having wound up purchases of government and corporate bonds -- so-called quantitative easing (QE) -- but facing an economy that is still too weak to lift interest rates from historic lows.

- Asia eyes trade row -

In Asia meanwhile, markets rose Thursday as investors try to ascertain the state of play in the China-US trade row.

However, the US government shutdown continued to rankle, with Democrats and Donald Trump digging their heels in over the president's border wall budget demand, while a White House official warned it could hammer the world's top economy.

For a second day, Asian equities swung to and fro, with few solid catalysts to drive trade, though Wall Street provided a positive lead as all three main indexes ended higher following upbeat earnings from the likes of titans Procter & Gamble and IBM.

Trump on Wednesday gave an upbeat assessment of the state of affairs in the trade stand-off, saying "we're doing very well in the negotiations" and that China "wants to make a deal".

However, his remarks come in a week that has seen the White House deny Financial Times and CNBC reports that officials had rejected Beijing's offer of preparatory discussions ahead of high-level talks in Washington.