European Stocks Eke Out a Gain
Author: Andrea Tryphonides; Polya Lesova</br></br>LONDON--European stocks finished in the black as upbeat U.S. economic data offset a statement by the head of the European Central Bank that an interest-rate increase next month "is possible."</br></br>On Thursday, the central bank left interest rates on hold at 1%, but the euro spiked versus the dollar after ECB President Jean-Claude Trichet made clear his willingness to raise rates to counter inflation.</br></br>"The ECB is ready to take a first pre-emptive strike against inflation and possible second-round effects next month," said Carsten Brzeski, economist at ING Bank. "Only a new banking crisis or further surging oil prices could probably throw a monkey wrench in the ECB's plans. The ECB's hawkishness of recent weeks was no bluff. Barking dogs will bite."</br></br>The Stoxx Europe 600 index ended up 0.3% at 283.58, off its high for the day of 285.80.