European stocks cautiously higher as focus shifts to central banks

The European equity markets are seen extending gains, after having opened the day on a firmer note, in response to a major turnaround in the risk conditions after the commodities’ prices staged a solid comeback and led the mining and energy stocks higher.

Moreover, markets also cheered the ongoing chatter that the BOJ is likely to do more easing next week by slashing the interest rates further into the negative, which suggests that an extended period of cheap money is likely to persist across the financial markets.

Meanwhile markets digest the latest mixed jobs report from the UK economy alongside the corporate news, keeping the upside capped on the region’s indices. While focus shifts to the upcoming central banks’ events from across the globe, with the BOE decision due tomorrow.

Meanwhile, Germany's DAX 30 index rises 0.24% to 10,410, while the UK's FTSE 100 index trades +0.51% higher at 6,698. Among the other indices, the French CAC 40 index gains 0.14% to 4,392, while the pan-European Euro Stoxx 50 index trades modestly flat around  2,975 points.