Markets Are Moving Up On A Big Day For Europe (DIA, SPY, QQQ)

REUTERS/Charles Platiau

Models present creations for Belgium fashion house Maison Martin Margiela as part of its Haute Couture Fall Winter 2013/2014 fashion show in Paris July 3, 2013.

Markets are rallying in Europe.

England's FTSE 100 is up 0.8%.

France's CAC 40 is up 0.9%.

Germany's DAX is up 0.7%.

Spain's IBEX 35 is up 0.7%.

Italy's FTSE MIB is up 0.6%.

"Portugal is conveniently reminding investors that the Euro area still has its problems and Greece has also offered its concerns to the mix," said UBS's Paul Donovan of the volatility that's returned to Europe this week. "Although not seemingly as severe as other years, 2013 does seem preparing for a Euro summer problem or two."

Later today, the Bank of England and European Central Bank will wrap up their respective meetings and update the world on their local interest rate policies.

"This week’s meeting will be the first with the new Governor, Mark Carney, in the chair," said Societe Generale's Brian Hilliard of the Bank of England. "He will arrive to a great fanfare but he will first need to familiarise himself with his new colleagues and with the issues before suggesting policy changes, even if he already deems that appropriate. So no action is likely this week."

Here's Donovan on today's ECB meeting: "Draghi has been at pains to point out that there are limits to monetary policy and the economic stimulus it can provide, but attention has perhaps now shifted more to the question of market stability (i.e. Portugal) and the press conference may see OMT questions asked."

In Asia, markets mostly ended higher closed with Australia's S&P/ASX up 1.0% and Hong Kong's Hang Seng up 1.6%.  Japan's Nikkei shed 0.2%.

U.S. markets are closed today for the Independence Day holiday.

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