European stocks rose the most in more than two months as the European Central Bank said that interest rates will remain low for an extended period, and Portugal’s political leaders sought to hold their coalition government together. U.S. index futures and Asian shares also climbed.

The Stoxx Europe 600 Index surged 2.3 percent to 292.09 at 4:30 p.m. in London, paring the gauge’s retreat from its 2013 high on May 22 to 6 percent. Standard & Poor’s 500 Index futures rose 0.9 percent today, while the MSCI Asia Pacific Index added 0.4 percent. U.S. equity markets are closed today for the Independence Day holiday.

The ECB’s President Mario Draghi predicted that interest rates will remain low for an extended period of time. Speaking at a press conference at the central bank’s offices in Frankfurt’s Eurotower, Draghi said that key interest rates will remain at their current levels or lower for as long as necessary. Policy makers left their main refinancing rate at 0.5 percent at today’s meeting.

In the U.K., the Bank of England signaled that it will leave interest rates at a record low for longer than investors had expected. The central bank left its bond-purchase target at 375 billion pounds ($565 billion) and its key rate at 0.5 percent.

National benchmark indexes advanced in every western-European market except Iceland.

FTSE 100 6,421.67 +191.80 +3.08% CAC 40 3,809.31 +107.30 +2.90% DAX 7,994.31 +164.99 +2.11%  

Banco Espirito Santo SA, Portugal biggest bank by market value, rallied 10 percent to 60.2 euro cents. Banco Comercial Portugues SA, the second largest, surged 9.9 percent to 8.9 euro cents. Portugal’s PSI 20 Index jumped 3.7 percent, paring its 5.3 percent tumble yesterday.

Taylor Wimpey added 7.2 percent to 103.9 pence. The U.K.’s second-largest housebuilder by market value reported an operating-profit margin in its domestic market of more than 13 percent, compared with 11.2 percent a year earlier. It will publish first-half results on July 31.

Persimmon Plc, the country’s largest homebuilder, added 4.5 percent to 1,267 pence. Barratt Developments Plc rose 5.1 percent to 334.3 pence.

Oerlikon rose 3.5 percent to 11.70 Swiss francs after the maker of textile machinery said it will receive 470 million francs ($492 million) from the sale of its natural-fibers business to Jinsheng Group of China.

PSA Peugeot Citroen (UG) surged 10 percent to 6.86 euros, its biggest gain since April 24. Goldman Sachs Group Inc. upgraded the shares of the French automaker to buy from neutral. The brokerage said that Peugeot will probably beat its goals for reducing cash consumption.

Oil prices fell slightly today, approaching at the same time to $ 105 per barrel, after the armed forces of Egypt turned the country's president, easing concerns about the threat of supply disruptions in the Middle East. The Suez Canal, which is a vital waterway for the transport of oil, has not suffered from the disorder, but analysts warned that the tense situation in the Middle East, which produces a third of the volume of the world's oil, may contribute to higher prices.

We also add that the drop in oil prices also helped the statement from the European Central Bank and the Bank of England, who pointed out that prior to any increase in interest rates far. It should be noted that both the central bank left interest rates unchanged - at 0.5%.

In addition, we note that in addition to the obvious risks to supply in the Middle East because of tensions in Egypt tightens the physical supply of oil export violations in Libya and Iraq as well as the relatively small supply of crude oil Russia.

In addition to concerns about supplies from the Middle East, oil prices got a boost after the last Energy Information Administration said that inventories fell by 10.3 million barrels to 383.8 million, which was the largest decline since 2000 . U.S. Energy Department also reported a drop in gasoline inventories to 1.719 million barrels to 223.662 million data differed with the forecast of analysts who had expected an increase of 700 thousand barrels. Distillate stocks fell 2.418 million barrels to 120.771 million barrels, the forecast increase of 1 million barrels.

At the price of oil also affect the expectations of tomorrow's report on non-farm payrolls, which can be a confirmation of the economic recovery on track. It can also be a sign that the Federal Reserve will cut back its bond purchasing program.

The cost of the August futures on U.S. light crude oil WTI (Light Sweet Crude Oil) fell to 100.91 dollars per barrel, the highest intraday level since May 4, 2012 on the New York Mercantile Exchange.

August futures price for North Sea Brent crude oil mixture fell $ 0.56 to $ 105.28 a barrel on the London exchange ICE Futures Europe.

The value of gold has not changed in the course of today's trading, despite the fact that the European Central Bank President Mario Draghi signaled the ECB may cut interest rates further. In addition, we add that, given the celebration of Independence Day in the United States, the volume of trading today is much lower than usual.

In today's July meeting on monetary policy, which was also attended by European Commission Vice-President Olli Rehn, the Governing Council of the ECB decided to keep interest rates at 0.5%.

European Central Bank President Mario Draghi suggested that inflation will remain "below, but close to, 2% over the medium term." He also noted that the recent confidence indicators in the euro area improved, and expressed the hope that later this year will begin a gradual recovery of the economy. Therefore, the ECB will keep rate accommodative to support economic activity.

Draghi said that "according to the expectations of the Governing Council, the key ECB interest rates will remain at current or even lower levels for a long time." Such a statement was an unprecedented display of transparency regarding their future intentions in dealing with the Central Bank of the market. He also assured that the program OMT, which has helped to reduce tensions in the financial markets, ready for activation when needed.

Despite the recent volatility in the financial markets, the head of the ECB noted an overall improvement in market sentiment in recent months, and expressed the hope that this situation will affect the health of the European economy.

Note also that the following statements Draghi all market participants' attention shifted to tomorrow's employment report in the U.S., which may affect future monetary policy.

Meanwhile, today it was announced that the gold reserves in the stock funds fell yesterday by 0.3%, reaching 2,036.89 tonnes (the lowest since May 2010).

The cost of the August gold futures on COMEX today dropped to 1247.90 dollars an ounce.

Data

00:30 Japan BOJ Governor Haruhiko Kuroda Speaks

01:30 Australia Building Permits, m/m May +9.5% -0.9% -1.1%

01:30 Australia Building Permits, y/y May +28.8% -0.1% -3.2%

07:00 United Kingdom Halifax house price index June +0.5% +0.4% +0.6%

07:00 United Kingdom Halifax house price index 3m Y/Y June +2.6% +3.6% +3.7%

09:00 Eurozone GDP (QoQ) (Finally) Quarter I -0.2% -0.2% -0.3%

09:00 Eurozone GDP (YoY) (Finally) Quarter I -1.1% -1.1% -1.7%

11:00 United Kingdom Asset Purchase Facility 375 375 375

11:00 United Kingdom BoE Interest Rate Decision 0.50% 0.50% 0.50%

11:00 United Kingdom MPC Rate Statement

11:45 Eurozone ECB Interest Rate Decision 0.50% 0.50% 0.50%

Euro fell against the dollar, despite the early growth, after the Governing Council of the ECB decided to leave key interest rates unchanged, in line with the forecast. The ECB announced that the interest rate on the main refinancing operations, the rate of credit and deposit rate will remain unchanged at 0.50%, 1.00% and 0.00%, respectively.

Now the market's attention has shifted to the speech of the Bank, Mario Draghi, who will comment on the grounds of the decision at a press conference scheduled for 12.30 GMT.

Add that little support for the euro has had a voltage drop in Portugal, as the coalition government has made every effort to survive. According to analysts, it is important that the other two parties minister CDS, whose leader, Foreign Minister Portas yesterday resigned to remain in the government, thus maintaining the coalition. Thus, the risk of disorderly elections declined, but recent events have obviously weakened the Portuguese government.

Do not have a material impact on the bidding Eurostat data on GDP of the eurozone, according to which in the 1st quarter of 2013 euro area GDP seasonally adjusted reflected a decline of 0.3% q / q vs. 0.2% q / q in Q4 2012.

Pound declined significantly against the U.S. dollar, losing more than 180 points against the decision of the Bank of England. The first meeting of Mark Carney as chairman of the Monetary Policy Committee of the Bank of England completed an unusual warning that the high expectations among investors tightening does not guarantee economic development. The meeting ended without any change in the policy of the central bank amid signs that the recovery in the UK economy is gaining momentum.

The Bank of England interest rate remaining at 0.5% and the size of its bond purchase program was maintained at 375 billion pounds after a two-day meeting. The benchmark rate has been at 0.5% since March 2009. Committee has approved a new round of bond buying, also known as quantitative easing, a year ago.

In the retreat of its usual practice, when the policy has remained unchanged, the Bank of England issued a statement in which he said that the recovery is under way, and that he expects the annual inflation rate 2.0% in the future.

Monetary Committee also said that it can raise its key interest rate sooner than investors expected. "The implied rate of the Bank of England is not justified in view of recent developments in the domestic economy," - said the Monetary Committee. Minutes of the meeting will be released on July 17.

Recall that Carney on Monday became the first foreigner to head the Bank of England in its entire 319-year history. His arrival coincided with a series of economic reports and business research, which made it clear that the recovery is in the UK, at least for now.

EUR / USD: during the European session, the pair rose to $ 1.3016, and then fell to $ 1.2982

GBP / USD: during the European session, the pair had fallen to $ 1.5073

USD / JPY: during the European session, the pair is trading in the range of Y99.46-Y99.90

At 12:30 GMT will begin monthly press conference of the ECB.

U.S. celebrates Independence Day.

EUR/USD

Offers $1.3100/10, $1.3070-80, $1.3040/50

Bids $1.2980, $1.2930/20, $1.2905/00, $1.2885/80, $1.2860/50

GBP/USD

Offers $1.3295/400, $1.5355/65, $1.5340/50, $1.5295/05

Bids $1.5220/15, $1.5100, $1.5080/70

AUD/USD

Offers $0.9245/50, $0.9220/25, $0.9200, $0.9175/80, $0.9150

Bids $0.9075/70, $0.9050, $0.9000, $0.8950

EUR/GBP

Offers stg0.8630/40, stg0.8590/600, stg0.8540

Bids stg0.8500, stg0.8465/60, stg0.8445/40, stg0.8420

EUR/JPY

Offers Y131.00, Y130.50, Y129.85/90

Bids Y129.20, Y129.00, Y128.55/50

USD/JPY

Offers Y101.00, Y100.35/40, Y100.20/25

Bids Y99.40, Y99.25/20, Y99.00

European stocks rose, halting a two-day drop, as investors awaited interest-rate decisions from the European Central Bank and the Bank of England, and Portugal’s political leaders sought to hold the coalition government together. U.S. index futures and Asian shares climbed.

The ECB will leave its benchmark interest rate unchanged at a record low of 0.5 percent today, according to 61 of 62 forecasts in a Bloomberg survey of economists. The central bank announces the decision at 1:45 p.m. in Frankfurt and President Mario Draghi holds a press conference 45 minutes later.

The Bank of England will hold its bond-purchase target at 375 billion pounds ($572 billion) and its key rate at 0.5 percent, separate surveys show. The central bank will announce its decision at noon in London.

Paulo Portas, whose resignation on July 2 threatened to bring down the Portuguese government, will meet with Prime Minister Pedro Passos Coelho in an attempt to hold the coalition together. An official in CDS, the smaller of the two parties in the government, said that Portas will seek a guarantee that his group can retain an influence on policy.

Banco Espirito Santo SA, Portugal biggest bank by market value, rallied 7.7 percent to 58.7 euro cents. Banco Comercial surged 7.4 percent to 8.7 euro cents. Portugal’s PSI 20 Index jumped 3 percent, paring its 5.3 percent tumble yesterday.

Taylor Wimpey added 4.4 percent to 101.2 pence. The U.K.’s second-largest housebuilder by market value reported an operating-profit margin in its home market of more than 13 percent, compared with 11.2 percent a year earlier. It will publish first-half results on July 31.

Persimmon Plc, the country’s largest homebuilder, added 2.3 percent to 1,241 pence. Barratt Developments Plc rose 2.4 percent to 325.5 pence.

FTSE 100 6,297.1 +67.23 +1.08%

CAC 40 3,730.87 +28.86 +0.78%

DAX 7,874.22 +44.90 +0.57%

AFT sold E7.99bln vs target E7.0bln-E8.0bln

- E5.36bln 1.75% May 2023 OAT; avg yield 2.32% (2.04%), cover 1.7 (1.61)

- E2.63bln 2.75% Oct 2027 OAT; avg yield 2.84% (2.58%), cover 2.75 (2.56)

Australia's building approvals dropped in May compared with the previous month, the latest figures from the Australia Bureau of Statistics showed Wednesday.

Total number of dwelling units approved in May fell 1.1 percent from a month earlier on a seasonally adjusted basis. This followed a 9.5 percent month-on-month growth recorded in April. Economists had predicted a 1 percent fall.

The number of private residential units approved, meanwhile, increased 2.5 percent month-on-month.

On an annual basis, overall building consents dropped 3.2 percent in May, data showed.

EUR/USD $1.2900, $1.2935, $1.3000, $1.3050, $1.3120, $1.3190

USD/JPY Y99.00, Y99.50, Y99.60, Y99.75, Y100.00, Y100.10, Y101.00

EUR/JPY Y130.25

GBP/USD $1.5150

EUR/GBP stg0.8500

USD/CHF Chf0.9600

AUD/USD $0.9050, $0.9070, $0.9150, $0.9200

Asian stocks outside Japan rose after better-than-estimated U.S. jobs data added to signs that the world’s largest economy is recovering, boosting the earnings prospects for exporters.

Nikkei 225 14,018.93 -36.63 -0.26%

Hang Seng 20,450.16 +302.85 +1.50%

S&P/ASX 200 4,794.7 +50.57 +1.07%

Shanghai Composite 2,006.1 +11.83 +0.59%

CSL Ltd., a maker of blood-derived therapies that gets about 38 percent of sales in the U.S., gained 3.5 percent in Sydney.

Cnooc Ltd., China’s largest offshore energy explorer, added 2.4 percent in Hong Kong as crude oil traded near a 14-month high.

Dentsu Inc., a Japanese advertising company that bought Aegis Group Plc, sank 9.2 percent after saying it will raise as much as 120.1 billion yen ($1.2 billion) selling shares to help pay for the deal.

00:30 Japan BOJ Governor Haruhiko Kuroda Speaks

01:30 Australia Building Permits, m/m May +9.5% -0.9% -1.1%

01:30 Australia Building Permits, y/y May +28.8% -0.1% -3.2%

The euro traded 0.6 percent from its weakest in more than a month before the European Central Bank meets today following recent comments from President Mario Draghi that monetary policy will stay accommodative. The central bank will keep its benchmark interest rate unchanged at a record low of 0.5 percent today, according to 61 of 62 forecasts in a Bloomberg News survey of economists.

The 17-nation currency fell for a second day against the yen after Portugal’s bonds slumped and two of the nation’s ministers resigned, reigniting concern Europe’s sovereign-debt crisis is worsening. With Portugal’s 10-year yield yesterday climbing above 8 percent for the first time since November, investors are seeking assurance from the ECB president that the central bank has no plans to end its current accommodative stance. Some economists are suggesting Draghi will go a step further and offer commitments on the path of interest rates.

The Dollar Index remained lower after declining yesterday from a one-month high ahead of a U.S. jobs report that may help signal whether the economy is strong enough for the Federal Reserve to pare back its bond purchases. The dollar remained lower versus its Japanese counterpart before a Labor Department report tomorrow that may show nonfarm payrolls in the world’s biggest economy increased by 165,000 jobs in June, a Bloomberg survey forecast. The unemployment rate is predicted to fall to 7.5 percent from 7.6 percent.

U.S. financial markets are closed today for the Independence Day holiday.

EUR / USD: during the Asian session the pair fell to $ 1.2985

GBP / USD: during the Asian session the pair fell to $ 1.5250

USD / JPY: during the Asian session the pair traded in the range of Y99.70/10

US markets are closed for the Independence Day holiday Thursday and there are only a few entries on the European calendar, albeit two the the bggest monthly set pieces - the ECB and BOE policy meetings. The only UK numbers set for publication are the June SMMT New Car Registrations expected at 0800GMT. At 1100GMT, the July BOE Monetary Policy Decision is expected. The meeting is new Bank of England Governor Mark Carney's first. Analysts are near unanimous in the belief that the July MPC meeting, whatever the views of Carney, will end with unchanged policy. The key decision making month is August, not July, and it would make littl sense, not least from a communications perspective, for the MPC to jump the gun. At its August meeting the MPC will have the updated quarterly economic forecasts that underpin that month's Inflation Report.

Change % Change Last

GOLD 1,251.50 8.10 0.65%

OIL (WTI) 101.16 1.56 1.57%

Nikkei 225 -0,31 -43,18 14,055.56%

Hang Seng 20,197.19 -461,46 -2,23%

S & P / ASX 200 4,744.13 -89,88 -1,86%

Shanghai Composite 1,994.27 -12.29 -0.61%

FTSE 100 6,229.87 -74.07 -1.17 %

CAC 40 3,702.01 -40.56 -1.08 %

DAX 7,829.32 -81.45 -1.03 %

DJIA 14,988.50 56.14 0.38%

S&P 500 1,615.41 1.33 0.08%

NASDAQ 3,443.67 10.27 0.30%

(pare/closed(00:00 GMT +02:00)/change, %)

EUR/USD $1,3008 +0,20%

GBP/USD $1,5278 +0,81%

USD/CHF Chf0,9466 -0,40%

USD/JPY Y99,97 -0,67%

EUR/JPY Y130,04 -0,45%

GBP/JPY Y152,70 +0,16%

AUD/USD $0,9083 -0,68%

NZD/USD $0,7767 +0,06%

USD/CAD C$1,0502 -0,43%

00:30 Japan BOJ Governor Haruhiko Kuroda Speaks

01:30 Australia Building Permits, m/m May +9.5% Revised From 9.1% -0.9% -1.1%

01:30 Australia Building Permits, y/y May +28.8% Revised From +27.3% -0.1% -3.2%

07:00 United Kingdom Halifax house price index June +0.4% +0.4%

07:00 United Kingdom Halifax house price index 3m Y/Y June +2.6% +3.6%

09:00 Eurozone GDP (QoQ) Quarter I -0.2% -0.2%

09:00 Eurozone GDP (YoY) Quarter I -1.1% -1.1%

11:00 United Kingdom Asset Purchase Facility 375 375

11:00 United Kingdom BoE Interest Rate Decision 0.50% 0.50%

11:00 United Kingdom MPC Rate Statement

11:45 Eurozone ECB Interest Rate Decision 0.50% 0.50%

12:30 Eurozone ECB Press Conference

12:30 U.S. Bank holiday