LONDON, Jan 11: European stock markets advanced on Thursday before key European interest rate decisions and after modest overnight gains on Wall Street, dealers said. They added that European equities had also been boosted by a fall of global oil prices which has the effect of reducing company costs and may therefore boost profits.

London's FTSE 100 index of leading shares rose 0.49 per cent to 6,191.00 points, in Frankfurt the DAX 30 index added 0.70 per cent to 6,612.83 points and the Paris CAC 40 won 0.79 per cent in value to 5,545.45 points.

The DJ Euro Stoxx 50 index of eurozone blue chip shares increased 0.65pc to 4,117.47 points. The euro stood at 1.2970 dollars.

In Europe on Thursday, the key investor focus was on interest rate decisions from both the European Central Bank and the Bank of England, which are expected to hold borrowing costs at 3.50 per cent and 5.00 per cent respectively.

Interest rates are crucial for companies because they affect their borrowing repayments.

In London, ITV topped the FTSE 100 leaderboard, up 2.57 per cent at 109.75 pence after Deutsche Bank raised its stance on the commercial broadcaster to 'buy' and increased its target price to 130 pence from 100.

The broker told clients it believed that new chief executive Michael Grade would transform the group's prospects.

In Frankfurt, Metro shares jumped 1.31 per cent to 50.30 euros after the leading German retail company posted stronger-than-expected full-year sales.

Meanwhile, stock market regulators overseeing the European Euronext stock market said on Thursday that they had given final approval to an alliance between Euronext and the New York Stock Exchange.

In Paris deals, Euronext shares soared 2.85 per cent to 97.6 euros.

Euronext comprises the stock markets in Paris, Brussels, Amsterdam and Lisbon and the financial futures market Liffe in London.

Back in Frankfurt, Deutsche Boerse shares jumped 5.46 per cent to 149 euros.

Wall Street shares shook off a weak start Wednesday and swung higher as a sharp drop in crude oil prices helped offset skittishness going into the heart of the corporate earnings season.

In US deals on Wednesday, the Dow Jones Industrial Average rose 0.21 per cent to close at 12,442.16 points while the Nasdaq composite increased 0.63 per cent to 2,459.33.

The broad-market Standard and Poor's 500 index added 0.19 per cent to 1,414.85 points.—AFP