Europe open: Stocks edge higher as investors eye BoE

European stocks edged higher in early trade as investors looked to the latest rate announcement from the Bank of England, which is widely expected to cut interest rates to a record low of 0.25%.

At 0850 BST, the benchmark Stoxx Europe 600 and France’s CAC 40 were up 0.4%, while Germany’s DAX was 0.7% higher.

At the same time, oil prices were mixed. West Texas Intermediate was flat at $40.83 a barrel and Brent crude was down 0.4% at $42.94.

Markus Huber, a trader at City of London Markets, said: “European shares are trading moderately higher this morning receiving a bit of a boost from firmer markets in Asia and the US overnight.”

Investors will be turning their attention to the UK, where the Bank of England rate announcement is due at 1200 BST.

Huber said: “As almost everybody expects a rate cut in light of the recent weakness seen in UK economic data this should therefore also pretty much completely be priced into share prices. Instead traders are keeping a close eye on what the BOE's next steps might be should the economic picture continue to decline and not just in regard to rate cuts but also possibly QE and other measures which would boost the domestic economy going forward.”

The next big focus this week will be Friday’s non-farm payrolls report in the US.

In corporate news, Nokia was under the cosh after its second-quarter earnings missed analysts’ expectations.

German healthcare and chemicals company Merck was also in the red despite reporting better-than-expected quarterly profit and lifting its full-year forecasts.

On the upside, Siemens racked up healthy gains as the German industrial conglomerate posted forecast-beating third quarter earnings and raised its guidance for fiscal 2016.

In London, insurers were on the front foot, with Aviva and RSA Insurance both firmly higher after well-received half-year reports. Aviva reported a 13% jump in operating profit to £1.33bn, while RSA Insurance posted a drop in pre-tax profit but a rise in operating profit and lifted its dividend.

Inmarsat advanced after the satellite operator said second-quarter profit rose and maintained its full-year guidance.