Europe midday: Stocks mostly higher as ECB considers bond buying
Stocks were mostly higher in the euro-area after the European Central Bank (ECB) vice president said the monetary authority would consider purchasing sovereign debt next year.
Vitor Constancio said the ECB would look into buying government bonds proportional to the size of each Eurozone member’s economy.
“We expect that the adopted measures will lead, within the time of the programme, the balance sheet to go back to the size it had in early 2012,” Constancio said in a speech in London on Wednesday.
“If not, we will have to consider buying other assets, including sovereign bonds in the secondary market, the bulkier and more liquid market of securities available.”
In the UK, gross domestic product (GDP) rose an annualised 3% in the third quarter, as expected by analysts, the Office for National Statistics confirmed.
Capital Economics said the second estimate of GDP indicated that the end of the squeeze on real pay is helping consumers to drive the overall recovery.
“What’s more, the prospects look bright for continued strong growth over the next few years,” the analysts said.
In the US, a report on durable goods orders in afternoon trading is forecast to show a 0.6% fall in October following a 1.1% drop in September.
Separately, initial jobless claims are forecast to rise 288,000 in the week to 22 November after 291,000 the previous week.
The University of Michigan’s consumer confidence index is projected to increase to 90 from 89.4.
Elsewhere in the US will be the release of data on personal spending and new home sales.
Utility stocks gain
Utility stocks were the highest risers of the 19 industry groups on the Stoxx 600, including Germany’s RWE.
Oil stocks slid as Saudi Arabia’s oil minister said falling crude prices will stabilise and there’s no need for producing nations to cut output.
Thomas Cook slumped after reporting annual profit that missed analyst estimates and announcing the resignation of its chief executive.
Amadeus IT Holding dropped as Deutsche Bank said it was selling 6.2m shares in the Spanish operator of travel booking systems.
The euro rose 0.01% to $1.2475.
Brent crude futures fell 0.28% to $78.11 per barrel, according to the ICE.