- ECB's Draghi addresses European Parliament
- Eurozone industrial output data released
- IMF says Eurozone risks falling into deflation
FTSE 100: 0.84%
CAC 40: 0.78%
FTSE MIB: 0.40%
IBEX 35: 0.64%
Stoxx 600: 0.85%
European stocks rallied as European Central Bank President (ECB) Mario Draghi spoke on monetary policy.
Draghi was due to speak in front of the Committee on Economic and Monetary Affairs of the European Parliament after the close today.
He is expected to comment on the tools the bank has and will use it to respond to the weakness in the European economy.
The ECB president is also likely to face questions about the euro's exchange rate
against the US dollar, according to the European Parliament's website.
"Given that the ECB has only recently announced a large scale monetary stimulus program, this speech is unlikely to offer much in terms of the proximity of future stimulus efforts and what form they're likely to come in," said Craig Erlam, analyst at Alpari UK.
"Draghi may be questioned heavily on the selection of stimulus measures that the ECB opted for, given that they have come in for quite a lot of criticism by market participants. The consensus view has been that the ECB took the easy way out and many of the measures announced are going to have very little positive impact. I can't imagine this therefore having much of a market impact, but as always with comments from a major central bank, you cannot write it off."
Elsewhere in the euro-area, a report on industrial production showed 0.5% year-on-year increase in May, as expected, following a 1.4% rise a month earlier. On the month, output contracted 1.1% in May from the previous month when it climbed 0.7%. Economists had pencilled in a 1.2% gain.
IMF says Eurozone is weak
The International Monetary Fund (IMF) has warned that the Eurozone is weak and risks falling into deflation.
The IMF recommended the euro-area repair bank balance sheets and step up reforms to boost employment. It also reiterated that the ECB should be ready for quantitative easing should inflation stay too low.
Gross domestic product next year is expected to rise to 1.5% from 1.1% in 2014 - compared to April's prediction of 1.2% growth this year.
SEB, Sports Direct
SEB was a high riser after the Stockholm-based bank reported an increase in second quarter net income that surpassed analysts' estimates.
Sports Direct International jumped after the UK retailer said it will open stores and websites in Australia
Shire gained after saying it is willing to recommend an offer from AbbVie.
Banco Espirto Santo declined after earlier rallying as the company appointed Vitor Bento as Chief Executive Officer.
Tesco rallied after Cantor Fitzgerald LP raised its recommendation on the UK's biggest supermarket owner to 'buy' from 'sell'.
Airbus was higher after saying it will go ahead with a project to upgrade and re-engine its A330 plane.
Meda retreated after US generic drug maker Mylans, which tried to buy Meda in April, said it is advanced talks to purchase some of Abbott Laboratories' portfolio of drugs in Europe.
The euro rose 0.12% to $1.3624.
Brent crude futures climbed 0.225% to $106.90 per barrel, according to the ICE.