- German investor confidence falls
- China injects liquidity into banks
- IMF to update world economic forecast
- ECB may revise Eurozone outlook, says Nowotny
FTSE 100: 0.26%
CAC 40: 0.40%
FTSE MIB: 0.54%
IBEX 35: -0.03%
Stoxx 600: 0.39%
European stocks were little changed as German investor confidence unexpectedly fell and as China pumped liquidity into its financial system.
The ZEW Centre for European Economic Research in Mannheim's index of investor and analyst expectations, which predicts economic developments six months in advance, declined to 61.7 in January from a seven-year high of 62 in December. Economists had pencilled in a reading of 64.
The fall was "a bit of a surprise given the upward momentum of recent months", according to Jonathan Loynes, Chief European Economist at Capital Economics.
"But it reverses only a fraction of December's gain and leaves the index still within a whisker of its highest level since April 2006," he added.
Meanwhile, the People's Bank of China injected more than 255bn yuan into the country's large commercial banks. The central bank said the move is aimed at ensuring the stability of the monetary market ahead of the Lunar New Year holiday later this month.
Later on, the International Monetary Fund releases its World Economic Outlook update.
The IMF is expected to report faster expansion of the world economy this year, led by the UK. In October, the group forecast global growth would accelerate to 3.6% this year from 2.9% growth in 2013.
The US markets will also return to trading after taking a break yesterday for Martin Luther King Jr. Day. Trading volumes will therefore pick up today but analysts predict it will remain lower than normal due to lack of economic data releases.
ECB may raise Eurozone outlook
European Central Bank (ECB) poliymaker Ewald Nowotny has said the monetary authority could raise its forecasts for Eurozone economic growth.
Nowotny told reporters today that the economies of Germany and Austria were strong and Spain and Ireland were developing more than anticipated.
He also said that inflation or deflation was unlikely any time soon as the ECB keeps monetary policy loose.
"If you distribute the risks then at this stage the likelihood that (the outlook) is better is higher than it being worse," he said when asked about where the ECB will increase its next economic growth forecasts in March.
Wirecard rallied after the provider of software for electronic payments reported a 22% jump in sales in 2013 and predicted strong growth in markets this year.
Unilever advanced after the consumer goods giant reported a rise in fourth-quarter underlying sales that exceeded estimates.
SABMiller declined after the brewer's third quarter organic beer volume rose less than analyst had expected.
Alstom was down after the French maker of trains and power equipment lowered its operating-margins forecast.
SAP slumped as the maker of business-management software delayed its profitability target.
PSA Peugeot Citroen gained following news the European carmaker is considering a capital increase of €3bn.
The euro fell 0.17% to $1.3529.
Brent crude futures increased $1.409 to $107.870 per barrel.