- UK industrial output rises
- Carney soothes fears over interest rates
- Chinese industrial production slows
- Fed officials hint at stimulus reduction
FTSE 100: 0.15%
CAC 40: 0.05%
FTSE MIB: 0.30%
IBEX 35: 0.61%
Stoxx 600: 0.18%
European stocks gained as UK industrial production grew in line with expectations and as Bank of England (BoE) Governor Mark Carney quashed fears of a hike in interest rates.
UK industrial output rose 0.4% in October, compared to a 0.9% increase in September, the Office for National Statistics revealed.
The report confirmed remarks by the BoE governor that the UK's economic recovery has been gathering pace. Carney, however, reiterated that the Bank was in no hurry to raise interest rates despite faster-than-expected pick up in the economy and the labour market.
In another positive note for markets, Italy's economy stagnated in the third quarter, ending two years of contraction.
National statistics bureau ISTAT revised up a preliminary estimate to show gross domestic product was unchanged between July and September, initially reported as a 0.1% fall.
Meanwhile, Chinese factory production climbed 10% in November from a year ago, compared to a 10.3% jump in October, the National Bureau of Statistic said. Analysts had predicted a 10.1% rise.
Fed officials address stimulus tapering
Investors are bracing themselves for a potential stimulus cut by the Federal Reserve when the US central bank meets next week after three officials delivered strong hints.
Fed officials Richard Fisher and Jeffrey Lacker, known hawks for a tapering of quantitative easing, warned yesterday of the risks and costs of the $85bn per month bond buying programme.
"However, it was the comments from James Bullard, a known dove and FOMC voting member, that gave the clearest message yet that a taper next week is well and truly on the cards," Alpari analyst Craig Erlam said.
Bullard claimed that a small taper would allow the Fed to monitor inflation next year and would reflect the improvement in the labour market.
Last week's better-than-expected jobs report fuelled speculation of a stimulus reduction. However concerns that the positive figures would prompt scaling back of asset purchases were outweighed by an improved outlook for the economy.
CGG, Royal Vopak
CGG SA rallied after Raymond James Financial Inc. a 'buy' rating for the French-based geophysical services company's stock.
Royal Vopak declined after the Dutch oil and gas tank storage provider said it was unlikely reach its goal of €1bn in earnings before interest, taxes, depreciation and amortisation in 2016.
Fresnillo dropped after the miner lowered its annual gold production forecast by 8.4% to 425,900 ounces and Prime Markets issued a 'sell' rating.
Ashtead advanced after the equipment rental company raised its interim dividend by 50% to 2.25p a share and reported a 23%increase in first-half revenue to £849.7m.
The euro rose 0.02% to $1.3742.
Brent crude futures rose $0.690 to $110.150 per barrel, according to ICE data.