European Shares Are Set to Rise, BoE Eyed

European stocks were set to rise on Thursday, tracking gains in Asia, where Japan's larger-than-expected stimulus plan fuelled hopes for the economy, while investors awaited the Bank of England's interest rate decision.

Spreadbetters are looking for London's FTSE to open up 18 to 33  points, or as much as 0.8 percent, Frankfurt's DAX to gain 38 to 65 points, or as much as 1.5 percent, and Paris' CAC 40 to add 12 to 31 points, or as much as 1.1 percent in early trade.

The Japanese government should spend a bigger-than-expected 15.4 trillion yen ($154 billion) on economic stimulus, the country's ruling party said, boosting stocks in sectors seen benefiting from the higher spending.

The stimulus plan, which aims to tackle Japan's deepest recession since World War Two, represents 3.1 percent of the country's GDP.

Later in the session investors will turn their focus to the Bank of England, which looks set to hold rates steady for the first time since September as it continues its 75 billion pound asset-buying program to get the economy out of recession.

The BoE's Monetary Policy Committee cut borrowing costs to a record low of 0.5 percent last month, marking the sixth straight month of rate reductions from a level of 5 percent before its October meeting.

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