Europe close: Stocks mostly higher after German data, Draghi stimulus remarks
European stocks were mostly higher as investors weighed German data and remarks on further stimulus measures in the Eurozone.
European Central Bank President (ECB) Mario Draghi said the monetary authority was unanimous in using additional unconventional instruments within its mandate if needed to address low inflation.
“In this context, we have also tasked relevant ECB staff and Eurosystem committees with the timely preparation of further measures to be implemented, if needed,” he said in a speech in Helsinki.
Draghi’s last week said that the ECB would consider buying government bonds if necessary.
Meanwhile, economic confidence in the Eurozone unexpectedly rose in November. The index increased to 100.8 this month from 100.7 in October. Analysts had pencilled in a reading of 100.3.
In Germany, the unemployment rate in November was unchanged from the previous month at 6.6%, compared to a forecast for a 6.7%.
The number of unemployed people fell by 14,000 this month, more than the 1,000 drop expected by economists. In October the number of jobless dropped 23,000.
GfK’s forward-looking index on German consumer confidence rose to 8.7 in December from 8.5 in November, beating expectations of 8.6.
German inflation rose 0.6% year-on-year in November, slowing from the 0.8% gain a month earlier, as expected.
The euro fell 0.23% to $1.2477.
OPEC keeps output target unchanged
The Organisation of Petroleum Exporting Countries (OPEC) decided to keep its output target unchanged at 30m barrels per day, surprising analysts who had expected at least some token action to be decided upon to slow the slide in crude prices.
The drop in Brent crude futures steepened on the news, to 3.5% to $75.05 barrel on the ICE, a level which some analysts have pencilled in as their target price for that benchmark of crude oil over the coming months.
Remmy Cointreau advances
Remy Cointreau SA gained after the French cognac maker reported first-half operating profit that beat analysts’ estimates.
Infineon Technologies AG declined after saying first-quarter sales may drop as much as 9% from the previous three months.
Stagecoach Group rallied after the UK government said will award the new London-Edinburgh East Coast franchise to Inter City Railways, a consortium of Stagecoach and Virgin Trains.