European stocks up
- Draghi hints at three year bond purchases
- Nokia comeback continues

FTSE 100:+0.82%
Dax 30:+0.63%
Stoxx 600: +0.84%
Cac 40: +1.19%
Ibex 35: +0.18%
FTSE MIB: +1.10%

European markets climbed on Monday as hopes for central bank stimulus rose on both sides of the Atlantic.

European Central Bank President Mario Draghi is expected to unveil a bond buying programme after the bank's policy meeting on September 6th.

On monday he was quoted as telling lawmakers at the European Parliament that the ECB is considering purchasing bonds with maturities of up to three years.

Last week Draghi's US counterpart, Fed Chairman Ben Bernanke indicated he too was open to "non-conventional" measures which most observers have interpreted as opening the door to further bond purchases.

The UK based research firm Markit Economics says the European manufacturing sector contracted by more than initially estimated in August. Its manufacturing Purchasing Manager's Index for the euro area was revised downward to 45.1 from an initial estimate of 45.3. Anything below 50 implies the sector is shrinking.

COMPANIES

Food and beverage stocks were the strongest on the Stoxx 600, rising 1.38%. The weakest segment was automobiles & parts, which fell 0.93%.

Italian drinks maker Campari will buy Jamaican rum maker Lascelles DeMercado for $414.8m in a bid to hasten its push into overseas markets. It rose around 7%.

Nokia continued its recent comeback, rising 4.7% as investors wonder, post Apple's court victory over Samsung, whether the ailing Finnish firm may yet yield more value.

The Spanish government is expected to inject up to €5bn into failed lender Bankia, which has just reported a €4.45bn first half loss. The group gained 8% on the news.

Fresenius Medical (+0.76%) has abandoned its takeover offer for Rhone Klinikum.

OTHER MARKETS

The euro was up 0.14% against the dollar at $1.2596 at 17:02.

Futures contracts on a barrel of brent crude had risen 0.81% by 16:53.

CAC 40 - Risers
Pernod Ricard (RI) € 88.67 +3.50%
Cap Gemini (CAP) € 30.00 +2.65%
Sanofi (SAN) € 66.51 +2.24%
L'Oreal (OR) € 99.73 +2.04%
Technip (TEC) € 85.27 +1.83%
Danone (BN) € 50.40 +1.72%
Vallourec (VK) € 37.50 +1.71%
Essilor International (EI) € 70.57 +1.70%
Saint Gobain (SGO) € 27.73 +1.65%
Accor (AC) € 25.62 +1.63%

CAC 40 - Fallers
Renault (RNO) € 36.82 -0.93%
Peugeot (UG) € 5.96 -0.91%
Credit Agricole (ACA) € 4.62 -0.45%
ST Microelectronics (STM) € 4.71 -0.15%
Societe Generale (GLE) € 21.02 -0.14%

Related share prices
Carpetright (CPR) share price
Nokia (NOK) share price