- No QE for now Draghi says
- Technology and bank stocks rise
FTSE Mibtel 30: 1.07%
Ibex 35: 0.63%
Stoxx 600: 0.61%
The main European equity benchmarks have begun the day moving moderately higher, as traders shift into a holding pattern ahead of the start, later today, of a two-day policy meeting of the US Federal Reserve.
On the macroeconomic front in Europe, albeit with a longer-term horizon, the most pertinent bit of information may be the result of a confidence vote on the recently proposed economic reform measures in France.
Economists will also be watching out for the latest harmonised German consumer price data for the month of April. That will come in the run-up to Wednesday's 'flash' estimate of the Eurozone-wide CPI.
The European Union's statistical office, Eurostat, is expected reveal that CPI rose by between 0.8% and 0.9% year-on-year in the euro area, after inflation slowed to a 0.5% pace in March. The CPI report is expected to reflect higher prices for services, especially travel-related, around the Easter holidays (which were in March last year), Barclays Research explained.
European Central Bank President Mario Draghi told German lawmakers this morning that quantitative easing programme is not imminent and remains relatively unlikely, Bloomberg reports.
Hence, perhaps for that reason, this morning's ascent in the euro/dollar, to 1.3860.
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 (1.63%), Telecommunications (1.23%) and Banks (1.15%).
German financial giant Deutsche Bank has 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 is now moving higher, towards 1.3860.
Front-month Brent crude futures were advancing by 0.378% to the $108.53/barrel mark on the ICE.