Europe midday: Shares up ahead of ECB rate decision

(Sharecast News) - European shares were higher at midday as investors waited for a widely expected interest rate cut by the European Central Bank.

The pan-regional Stoxx 600 index rose 0.30% to 552 with most major bourses higher. Traders are expecting a 25-basis-point interest rate cut from the ECB at its policy meeting.

"It was an uneventful opening bell for broader European markets this morning, as investors are all but certain the European Central Bank will cut rates later today down to 2%," said Hargreaves Lansdown analyst Matt Britzman.

"Hopes for easing grew after Eurozone inflation dipped to 1.9% in May, just below the ECB's target. More cuts are on the cards too, with interest rates expected to fall to 1.5% by the end of the year - low enough to start actively supporting the economy."

"Meanwhile, global markets are still cautious due to persistent trade tensions, with US President Trump casting doubt on progress with China. US futures are trading broadly flat this morning, with sentiment dented after the latest bout of economic data showed slowing growth in private sector jobs."

"Strong earnings and a resurgence in the tech trade have been enough to push US markets higher over the past month or so, but there's still a sense of caution in the air."

In equity news, shares in Wizz Air plunged 25% after the budget carrier's annual operating profit missed expectations.

Eutelsat fell sharply after South Korea's Hanwha Systems offered to sell its entire 5.4% stake in the firm for around �78m.

Reporting by Frank Prenesti for Sharecast.com