Major stock indices in Europe show a positive trend

European stocks showing again strong increases after four days of consolidation, helped by positive corporate earnings and expectations of large package of stimulus measures in Japan. However, investors are cautious on the eve of the announcement of the Federal Reserve and Bank of Japan meetings.

Analysts say that the Fed is likel not to change the interest rate, but market participants are hoping to get new guidelines on the possible timing of interest rate increases in the coming months after a series of strong data in the US. Today futures on interest rates suggest that the market is taken into account a 2% probability of a rate hike in July. Meanwhile, the probability of a rate hike in December, up almost 20%.

Some support for the market had statistical data on Britain. The ONS said that in the 2nd quarter gross domestic product grew by 0.6 percent compared with an increase of 0.4 percent in the first three months of this year. It was expected that the economy will expand again by 0.4 percent. In annual terms, GDP grew by 2.2 percent, recording the strongest growth during the year, and accelerate the pace compared to the first quarter (+2.0 percent). It was predicted that economic growth will stabilize at 2.0 percent. However, experts say that such a steady rate of growth can not continue into the second half of the year, given the shock to the economy as a result of voting for a way out of the EU. In the 2nd quarter, the services sector recorded an increase of 0.5 percent, while the manufacturing sector - by 2.1 percent (the best figure since 1999). In contrast, the segment of construction and agriculture reported a decrease of 0.4 percent and 1.0 percent respectively.

The composite index of the largest companies in Europe Stoxx 600 added 0.5%. The French CAC 40 index, which shows an increase of 1.4%, is the leader among the Western European markets.

Quotes of LVMH Moet Hennessy Louis Vuitton rose 7.8% after the world's largest luxury goods reported a strong demand for champagne and cognac.

PSA Group's shares rose 7.1 percent, as the automaker announced the increase of earnings for the first half of the year.

The cost of Airbus Group SE has grown by 4.9 percent since the airline revenue beat analysts' expectations.

The price of Air France-KLM Group increased by 2.8 percent after the news about the increase in operating profit.

Capitalization of ITV Plc rose 7.5 percent after the British broadcaster reported an increase in sales in the first half of the year.

Cost of Banco Santander SA rose 3.5 percent as the bank's profit exceeded analysts' expectations.

At the moment:

FTSE 100 +23.92 6747.95 + 0.36%

DAX +71.12 10318.88 + 0.69%

CAC 40 +60.80 4455.57 + 1.38%