Interest rate speculation excites stock markets

European markets have built on an opening bounce this morning, inspired by talk of an interest rate cut later this week.

A favourable court ruling for Microsoft has boosted technology stocks to the head of gainers, with Nokia leading the way ahead of its annual Internet conference.

Banking stocks have also gained ground this morning after results from ABN Amro beat expectations and NIB said that it was interested in the private equity investments of Deutsche Bank.

Investor confidence has been buoyed by expectations of an opening jump on Wall Street this afternoon.