- No QE for now, Draghi reportedly says
- Weak German CPI and Eurozone M3 numbers
- Technology and bank stocks rise
- Russia says it does not want to repeat Crimea situation
FTSE Mibtel 30: 1.50%
Ibex 35: 0.85%
Stoxx 600: 0.76%
Equities across the Continent were registering sharp gains despite the release of some rather weaker than expected economic data and remarks attributed to European Central bank President Mario Draghi to the effect that QE is not on the table at the moment.
The President of the European Central Bank told German lawmakers this morning that quantitative easing programme is not imminent and remains relatively unlikely, Bloomberg reported, citing an official present at the discussions.
However, the latest German regional consumer price (CPI) figures out in the morning came in lower than forecast across the board, although for now economists have maintained their forecasts for the Eurozone CPI report due out on Wednesday.
As well, the latest set of money supply (M3) data for the month of March have revealed worsening credit trends to the private sector within the single currency area.
"The continuation of weak lending volumes therefore could indicate that bank loan supply constraints are now binding and may increasingly weigh on the recovery.
"Therefore, we believe that the likelihood of targeted ECB measures (longer-term refinancing operation targeted towards encouraging bank lending or an ABS purchase programme, supported by the necessary regulatory changes aimed at revitalising high quality securitisation in Europe), which has been our base call for this year, is rising," Barclays Research said in reaction to the data.
Acting as a backdrop, Russian Deputy Foreign Minister Sergei Ryabkov said that the "Crimean scenario" will not be repeated in south eastern Ukraine, according to Interfax, citing an online interview with the Gazeta.ru on Tuesday.
"I emphasize that we are absolutely not inclined to lead things to repeating the so-called Crimean scenario in southeastern Ukraine. No grounds exist to fear this," Ryabkov went on to say.
All of the above comes ahead of the start, later today, of a two-day policy meeting of the US Federal Reserve.
Technology and bank stocks higher
From a sector standpoint, and within the DJ Stoxx 600, the largest gains were seen in the following industry groups: Technology (1.84%), Banks (1.36%) and Oil&Gas (1.27%).
German financial giant Deutsche Bank revealed a 24% drop in first quarter profits. The lender said on Monday that it would issue a multi-currency bond of at least €1.5bn to help it strengthen its capital levels.
French drug-maker Sanofi reported lower-than-expected first-quarter earnings.
Spanish lender Santander announced an 8% rise in net profits for the first three months of the year to €1.3bn, slightly less than expected. It has also launched an offer to buy out the remaining 25% of its Brazilian unit which it does not already own.
Nokia stock is gaining on news that it has named a new Chief Executive Officer.
Euro edges higher
The euro/dollar was moving higher, towards 1.3860.
Front-month Brent crude futures advanced by 0.469% to the $108.63/barrel mark on the ICE.