LONDON, July 4 European shares climbed higher
early on Thursday, recovering most of the losses incurred over
the previous two sessions, as recent underperformers such as
autos and miners rebounded.
The FTSEurofirst 300 rose 10.45 points, or 0.9
percent, to 1,161.35, having fallen 1.1 percent since Tuesday,
but political unrest in Egypt and European debt concerns
surrounding Greece and Portugal were likely to cap upside
Volumes were expected to be thin too, with the U.S. market
closed on Thursday for the Independence Day holiday and ahead of
rate decisions and statements by the European Central Bank and
the Bank of England later in the session.
Although no policy changes are expected from both the
central banks, investors will be looking for dovish tones from
the ECB president Mario Draghi to help calm markets after bond
yields in peripheral euro zone countries rose.
"I am expecting some healing words from Draghi, which should
calm fears over the situations in Portugal and Greece because it
is a very psychologically driven market," Rolf Bland, chief
investment officer at VZ Vermogenszentrum in Zurich, said.
"I don't think any new stimulus measures will be on the
table, but it is a question of words and making clear once again
that everything will be done (to save the euro) and interest
rates and policy will remain accommodative, which will be very
helpful at this moment," he said.