Nikkei, gold and bank gains give European stock indices a boost

Nick Serff, Market Analyst, City Index commented: "European equity indexes rose between 0.5 and 1 percent in early trade on Thursday, boosted by strong overnight gains for gold and a 3.8 percent gain for the Nikkei 225. The Nikkei continued its recent snap back from multi month lows to finish higher for the fourth day in a row. The index is now sitting just below the psychologically important 10000 level.

Banking shares topped the FTSE 100 leader board in early trade, with Lloyds and Barclays adding over 8 points to the index. News overnight that Bank of America plans to pay back $45 billion of TARP aid, helped UK and European banking shares to rise.

Kingfisher

Kingfisher has rallied over 2 percent this morning after releasing better than expected third quarter profit forecasts. The home improvement retailer said that it was cutting debt more quickly then expected, and that they expected a solid Christmas period. Cost cutting measures and better market conditions were the main drivers behind the 28 percent rise in profits.

ECB

The European Central Bank will be closely watched today when they announce their decision on European interest rates later this afternoon. Although it is widely expected that rates will be left on hold at 1 percent, close attention will be paid to any clues on exit strategies.

Investor volume has started to taper off as we trade back towards the high end of the range on the FTSE and DAX. With the ECB meeting later this afternoon and Non Farm Payroll data tomorrow, we could see the market consolidate around these levels over the next 24 hours."