Reply #6: Europe markets mixed pending Trichet

[EuroObserver]

Swiss SMI down -0.01% at 7979.80 in Zurich 10:27:55 CET
Xetra Dax 30 opens up 0.1% at 5,872.18 in Frankfurt
FTSE 100 opens up 0.3% at 5,863.3 in London
CAC 40 opens up 0.2% at 5,068.02 in Paris

Shares turn mixed, euro firms as ECB hike looms
LONDON, March 2 (Reuters) - European stock markets turned mixed on Thursday, failing to push through recent multi-year highs, while the euro firmed and Bunds sagged ahead of an expected euro zone interest rate hike.

The European Central Bank is universally seen raising rates by a quarter point to 2.5 percent at 1245 GMT after an initial rise to 2.25 percent in December -- the ECB's first hike in five years.

But with that already priced in, the news conference by ECB President Jean-Claude Trichet due at 1330 GMT was more eagerly awaited (Double click here for a preview).

"Given the recent surge of business sentiment across the euro area, the ECB could already start to pave the way for another 25 basis points hike. If so, we see upside risks to our current forecast of a 25 bp rate rise in the second quarter," economists at Morgan Stanley wrote in a note.

The FTSEurofirst300 index <.FTEU3> of leading European shares slipped 0.1 percent to 1,354.7 points, having bounced in the previous session after the benchmark on Tuesday posted its biggest one-day fall since October. ...more...