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Central Bank Decisions Undergird European Bourses Midday

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European bourses tracked higher midday Thursday as traders weighed Persian Gulf tensions, the earnings season, and a Bank of England decision to hold rates steady.

Food stocks led gains on continental trading floors, while bank shares lagged.

Investors also eyed Wall Street futures in the green, but mostly lower closes overnight on Asian exchanges.

The Bank of England announced it will hold its key policy interest rate unchanged at 3.75%, hours ahead of a European Central Bank (ECB) decision that is also expected to hold the policy rate steady, although at 2%.

In economic news, euro area annual inflation is expected to log at 3% on year in April, up from 2.6% in March, reported Eurostat.

In Q1, seasonally adjusted gross domestic product (GDP) increased by a tepid 0.1% in both the euro area and the EU, said Eurostat.

The pan-continental Stoxx Europe 600 Index was up 0.6% mid-session.

The Stoxx Europe 600 Technology Index was up 0.5%, and the Stoxx 600 Banks Index lost 0.7%.

The Stoxx Europe 600 Oil and Gas Index rose 0.4%, while the Stoxx 600 Europe Food and Beverage Index inclined 1.2%.

The REITE, a European REIT index, rose 0.4%.

On the national market indexes, Germany's DAX was up 0.7%, and the FTSE 100 in London gained 1.3%. The CAC 40 in Paris was down 0.1%, and Spain's IBEX 35 lifted 0.1%.

Yields on benchmark 10-year German bonds were lower, near 3.07%.

Front-month North Sea Brent crude oil futures were down 1.1% at $109.19 a barrel.

The Euro Stoxx 50 volatility index was up 1.8% at 23.77, indicating above-average volatility for European stock markets in the next 30 days, a negative signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

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