Europe midday: Stocks extend gains on hopes for central bank easing

Stock markets across the Continent are moving higher despite the ongoing trade frictions around the world, with investors at least in part apparently pinning their hopes on the prospect for easier policy from central banks as the waited for the European Central Bank's policy announcement later in the day.

"Gains in Europe so far appear to be based on the idea that the ECB will issue a supportive statement this afternoon, helping to maintain the recovery in risk appetite witnessed over the past few days," said IG's Chris Beauchamp.

"Away from the ECB, the market continues to fret that trade wars will be a major drag on growth."

A meeting on Wednesday evening between US and Mexican officials to discuss immigration was adjourned without having reached an agreement, leading the US President to reiterate a previous threat to impose tariffs of up to 25% on goods from its southern neighbour.

Those talks were set to continue on Thursday.

As of 1210 BST, the benchmark Stoxx 600 was ahead by 0.60% to 376.33, alongside a rise of 0.61% for the German Dax to 12,053.33, while Italy's FTSE Mibtel was adding 1.02% to 20,360.45.

The ECB was expected to stay put on rates, but investors were waiting on further technical details for its next batch of bank loans and the latest set of quarterly macroeconomic projections from its staff.

Rate-setters at the ECB were set to announce their decision at 1245 BST.

In the background meanwhile, speaking from the St. Petersburg International Economic Forum, Bank of Russia of Governor, Elvira Nabiullina, said an interest rate cut was possible at next week's policy meeting.

And overnight, the Reserve Bank of India joined Australia's in cutting rates - as expected.

Elsewhere on the economic front, Eurostat confirmed that the euro area's gross domestic product expanded at a quarter-on-quarter pace of 0.4% in the first quarter of 2019, helped by a 1.1% jump in investment.

Greece's national statistics office ELSTAT however reported that the rate of unemployment in the Mediterranean country fell from a downwardly revised 18.4% for February to 18.1% in March.

In the corporate patch meanwhile, all eyes were on Renault after Fiat Chrysler opted to walk away from merger talks - at least for now - reportedly after the government in Paris asked for the negotiations to be postponed.