By Sara Sjolin, MarketWatch
LONDON (MarketWatch) -- European stock markets were little
changed on Thursday, as investors stayed on the sidelines ahead of
policy decisions from the European Central Bank and the Bank of
England, and waited for the first estimate of U.S. third-quarter
economic growth.
The Stoxx Europe 600 index stuck close to the break-even mark
around 232.20, after gaining 0.4% on Wednesday.
Shares of Commerzbank AG rallied 8.3% after the German lender
reported better-than-expected profit for the third quarter, boosted
by improvements in cost cutting, a lower tax rate and lower
loan-loss provisions. The main revenue driver, net interest income,
also exceeded expectations.
Siemens AG (SI) climbed 2.5% after the industrial major reported
a slight drop in fiscal fourth-quarter profit, but announced plans
for a share buyback.
On a more downbeat note, HeidelbergCement AG lost 3.3% after the
cement maker said it will become tougher to reach its financial
targets as currency effects are weighing on operating income.
More broadly, investors were waiting for potentially
market-moving events on both sides of the Atlantic later in the
day. In Europe, the ECB was likely to claim the spotlight, with its
rate decision and monthly news conference on tap. The central bank
has left monetary policy unchanged over past meetings, but after a
weak inflation reading for October out last week, analysts started
speculating that a rate cut could be on the cards at Thursday's
meeting or in December. The rate decision is out at 12:45 p.m. in
London, or 7:45 a.m. Eastern Time. The main event, however, is
likely to be Draghi's news conference at 1.30 p.m. London time.
Read: Don't take your eye off the European Central Bank and Mario
Draghi
"We think it will not unveil any new measures, although -- with
an eye on the markets -- Draghi's rhetoric will certainly be
dovish. But while some members of the Governing Council had already
favored further policy easing before these latest CPI data, the
majority seems unlikely to be panicked into taking any new action,"
analysts at Daiwa Capital Markets said in a note ahead of the
meeting.
The Bank of England is expected to keep policy unchanged. The
decision is due at noon local time.
At 1.30 p.m. in London, the first estimate of third-quarter
gross-domestic-product growth in the U.S. is out. Although
economists surveyed by MarketWatch predict the U.S. likely expanded
by 2.3%, some see growth as high as 2.7% while others predict 1.7%
or even less.
U.S. stock futures pointed to a lower open on Wall Street.
Back in Europe, Germany's DAX 30 index inched 0.1% higher to
9,046.48. France's CAC 40 index was flat around 4,286.46, while the
U.K.'s FTSE 100 index dropped 0.2% to 6,727.27.
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