- UK interest rate hike to be gradual, says Carney
- BoE minutes show unanimous policy decision
- Bank of Spain lifts economic forecast
- Eurozone confidence falls unexpectedly
FTSE 100: 0.04%
CAC 40: 0.16%
FTSE MIB: -0.20%
IBEX 35: 0.10%
Stoxx 600: 0.12%
European stocks were mostly higher after Bank of England (BoE) Governor Mark Carney stressed that interest rate rises would be gradual.
Speaking in Glasgow ahead of the opening of the Commonwealth Games today, Carney said that interest rate increases will be more restrained than in the past as such challenges including a stronger pound, weak demand in key export markets and government budget-cutting continue to hold back growth.
Carney's speech came the same day as the release of the central bank's minutes from its July 9-10th meeting, which showed all Monetary Policy Committee (MPC) members agreed to maintain the benchmark rate at a record low of 0.5% and asset purchases at £375bn.
Meanwhile a report showed Eurozone consumer confidence fell unexpectedly. The sentiment index dropped to -8.4 in July from -7.5 a month earlier, missing estimates for an unchanged reading.
On a more upbeat note for markets, the Bank of Spain (BoS) forecast an acceleration in the Spanish economy for this year and next thanks to the improving financial conditions, labour market and consumer confidence.
In its monthly bulletin today, the central bank said it expects gross domestic product growth to pick up to 0.5% in the second quarter from the 0.4% expansion registered in the first three months of the year. For the full year 2014, the BoS lifted its estimate by one-tenth to 1.3% and for 2015 raised its estimate to 2% from 1.5%.
Geopolitical tensions were being monitored in Ukraine and the Middle East after dragging markets lower this week.
The first bodies recovered from the Malaysia Airlines flight that was downed in Ukraine last week, killing all 298 people on board, have arrived in the Netherlands today to begin the process of identification. Most of those killed were Dutch nationals.
The death toll in Gaza has exceeded 600 as Israeli continued to storm the region after two weeks of clashes.
rocketed on reports that Weir may consider buying the Finnish mining equipment maker after it failed in a bid for sector peer Metso Oyj earlier this year.
GlaxoSmithKline tumbled as the drugmaker disappointed with a 4% drop in quarterly sales to £5.6bn and lowered its full-year outlook.
Akzo Nobel gained after reporting second-quarter profit that exceeded expectations.
Daimler advanced after posting second-quarter profit that beat market forecasts.
Telenor edged higher after the largest phone company in the Nordic region said it expects this year's profit margin to improve from 2013.
Deutsche Bank slumped after The Wall Street Journal said that an examination by the Federal Reserve Bank of New York claims the company's US operations produced "inaccurate and unreliable" financial reports.
The euro held at $1.3466.
Brent crude futures increased 0.491% to $107.86 per barrel, according to the ICE.