- Spain's unemployment rate drops
- Eurozone PMI Composite
- China PMI Manufacturing
- BoE's Carney to speak
FTSE 100: 0.30%
CAC 40: 0.25%
FTSE MIB: 0.63%
IBEX 35: 0.62%
Stoxx 600: 0.35%
European stocks rebounded from yesterday's slump as Spain's unemployment rate fell more than expected and as investors waited the release of Eurozone purchasing managers' index (PMI) data.
Spain's jobless rate declined in the third quarter to 26% from 26.3% in the previous quarter, compared to the consensus of 26.1%, the National Statistics Institute revealed.
The busy tourist season helped to boost employment in the nation between July and September, the report said.
The country's central bank yesterday estimated that Spain's economy grew for the first time in two years in the third quarter, exiting the second recession since 2008.
In another report to be released today, the Eurozone PMI Composite, which includes manufacturing and services activity, is predicted to have slowed slightly to 52.4 in October from 52.2 last month. A reading above 50 signals expansion.
It follows the release of China's manufacturing PMI which rose to 50.9 in October from 50.2 last month, beating the 50.4 forecast.
It pointed to signs the recovery is gaining momentum in the world's second largest economy.
Stocks fell yesterday in response to a report that sparked fears over China's banking sector. The report showed debt write-offs at China's biggest lenders more than tripled in the first half.
In the US, initial jobless claims figures for the week ended October 18th will be released later today. It comes two days after a report showed non-farm payrolls increased by 148,000 in September, missing the consensus for 180,000.
The report had been delayed by over two weeks due to the prolonged government shutdown.
The weaker-than-forecast jobs data also reinforced expectations that the Federal Reserve will hold off on tapering its monetary stimulus.
"By now we know that we are almost certain to not see a taper next week when the FOMC reconvene to discuss when to begin trimming back on the current $85bn monthly asset purchase scheme," said Craig Erlam, Market Analyst at Alpari.
This afternoon Bank of England Governor Mark Carney will speak at the Financial Times 125th anniversary event in London.
He is likely to drive home the Bank's vow to keep interest rates at the current low of 0.5% until the unemployment rate falls to 7%.
Minutes of the Bank's last meeting, released on Wednesday, showed a unanimous vote to maintain the current monetary policy.
Daimler gained after the maker of luxury vehicles reported third-quarter earnings that beat analysts' forecasts.
ABB climbed after the maker of power transformers reported earnings that topped estimates amid growing orders in China and Germany.
Celesio rallied after McKesson Corp. agreed to buy the German drug wholesaler for €3.9bn.
Credit Suisse Group fell after the Swiss bank reported second quarter profit that missed analysts' expectations.
Other asset classes increase
The euro rose 0.05% to $1.3783.
Brent crude futures were up $0.268 to $108.090 per barrel on the ICE.