Europe midday: Stocks little changed as ECB reiterates further measures if needed
Stocks in the Eurozone were little changed as European Central Bank President (ECB) Mario Draghi said the monetary authority was unanimous in using further measures if needed to address low inflation.
Draghi reiterated that the ECB would use “additional unconventional instruments within its mandate” if inflation remained low for too long.
“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.
The comments reiterate Draghi’s remarks last week that the ECB would consider bond buying if necessary.
However, the president believes that current measures, including its asset backed securities and covered bonds purchase programme, should provide the boost the economy needs. It comes amid concerns that the Eurozone is weighing down global economic growth.
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.
Inflation in Europe’s biggest economy, released at 13:00, is pegged to ease back to an annualised 0.6% in November from 0.8% a month earlier.
The euro fell 0.19% to $1.2482.
Oil slides as OPEC meets
Oil price hit a new four-year low amid mounting speculations that OPEC producers will not agree output cuts at a meeting in Vienna. Brent crude fell 2.2% to $76.02m, according to the ICE.
In company news 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.