Europe open: Markets cheer Macron performance in French election debate

European equities are trading on the frontfoot at the start of the day following a convincing performance from centrist French presidential candidate Emmanuele Macron in a key televised debate overnight.

As of 08:20 BST the benchmark Stoxx 600 is up by 0.22% at 390.24, alongside gains of 0.23% to 12,557.10 for Germany's Dax and an advance of 0.41% for Paris's Cac-40.

Tellingly, the yield spread between the benchmark 10-year French and German sovereign bonds was two basis points narrower at 46.

The fact that the spread, which is a gauge of the risk differential between both countries, was trading near its highs from before the election premium was priced-in meant may mean there is room for a relief rally following the 7 May run-off vote in the French elections if it is being reflected elsewhere too, said Craig Erlam, senior market analyst at Oanda.

Analysts at UniCredit Research described the debate between Macron and his far-right rival Marine Le Pen on their vision of France's future, the euro and ways of fighting terrorism as "fierce". The snap opinion poll carried out by Elabe for BFMTV after the debate showed 63% of viewers found Macron the more convincing of the two.

In the US, there was little to report from Wednesday night's US central bank policy, although markets moved quickly to discount a near certain chance of a 25 basis point rate hike at the Fed's June meeting.

"The US curve did not draw any meaningful conclusions from the largely unchanged wording of the FOMC risk-assessment and fed fund futures still underprice the potential for further rate hikes, in our view, with the odds for at least two more rate hikes by the end of the year trading at just 54.8%," said analysts at UniCredit Research.

IHS Markit's service sector purchasing managers' index for Spain rose from 57.4 for March to 57.8 (consensus: 57.7) amid sharp increases in activity and new business.

An equivalent gauge for Germany slipped from 55.6 to 55.4.

Ahead on the economic calendar for Thursday, figures on US durables goods orders and foreign trade in March were scheduled for release at 14:30 BST and 15:00 BST, respectively.

Shares in athletic apparel-maker Adidas were higher after the company posted better than expected first quarter revenues and profits, thanks to its e-commerce and North America ops.

BMW posted a 31% jump in first quarter profits to reach €2.15bn.